Telstra, Australia’s largest telecommunications and media company, has made a strategic investment in phone-based authentication and fraud detection solutions provider TeleSign, the company announced on Wednesday.
TeleSign’s two-factor authentication solution helps organizations protect their customers’ accounts with the aid of one-time passwords (OTP) provided via SMS, voice or mobile applications during the login process. Telstra believes these types of solutions are becoming increasingly useful for mobile operators, which is why the company is considering offering the technology to its own customers.
“The TeleSign solution brings additional security to data and identity, enabling a safe and confident service experience. We are excited to part of the journey as the company continues to expand globally,” said Mark Sherman, managing director at Telstra Ventures, Telstra Corporation’s venture capital arm. “We hope to be able to offer a range of mobile identity solutions from this innovative provider and we will work closely with TeleSign to explore opportunities to bring this technology to our own customers.”
TeleSign, which is based in Los Angeles, California, recently raised $40 million in a Series B funding round led by Adams Street Partners. The money is being invested in the company’s growth strategy and new innovation opportunities.
The latest investment from Telstra enables TeleSign to leverage Telstra’s reputation and customer relationships to accelerate growth in the Asia Pacific market.
“Companies are searching for simple-to-use, effective security solutions that can serve a global user base. This investment will allow us to work closely with Telstra, combining our expertise and their regional experience to better serve customer needs,” noted Steve Jillings, CEO of TeleSign.
“TeleSign has been very successful at making the Internet a safer and more secure place by protecting businesses and users from fraud,” said Jillings. “We’ve doubled revenue every year for the last four years and with a host of new products being readied for launch, we expect that growth to continue. The Telstra investment gives us additional resources to innovate even faster and continue our global expansion as we move toward our goal of an IPO.”
Numerous organizations in industries like e-commerce, banking and entertainment rely on TeleSign solutions to protect 3.5 billion accounts across 200 countries, the company reported.