Intel Capital together with the USA venture capitalists Greycroft Partners bought a part of the Tartu company Fortumo that offers mobile payments. The transaction value is approximately one million euros.
“The cooperation with Intel Capital and Greycroft allows us realising our growth plans faster, and consider strategic partnerships as well as acquisition of other companies,” said head of Fortumo Rain Rannu.
“Involving capital from the USA does not mean that the company will move from Estonia, instead, it means that more jobs are created in Estonia. Currently Fortumo employs 40 people in Tartu. By the end of the year we hope to expand to 60 people. The main office and management will remain in Tartu,” added Rannu.
The new investors have minority ownership in Fortumo and the Tartu mobile services company Mobi Solutions will still remain the largest shareholder. Additionally, the key employees of the company have a holding in Fortumo.
Fortumo’s service allows payment for digital services with mobile invoices without having to use a bank card. Fortumo has mobile operator connections in 80 countries with 300 mobile operators. The mobile payments are available for 4 billion people worldwide.
“Mobile payments have immense potential and Fortumo has all the possibilities to profit from the fast-growing market of mobile operator-based payments market,” said Marcin Hejka, CEO of Intel Capital’s Central and Eastern European, Middle Eastern and African Region.
Additionally, Fortumo has concluded direct contracts with two of the world’s largest telecommunication groups Vodafone and China Mobile. Fortumo’s client portfolio, which previously included the creator of Angry Birds, Rovio, now includes well-known game developers Gameloft, Vostu and Zeptolab (Cut the Rope). In January, Fortumo started cooperation with Microsoft for popularising the in-app payments on Windows 8 platform.