Boku enables mobile payments by using carrier billing so consumers can charge purchases directly to their mobile phone accounts rather than using credit cards or bank accounts. Its integration requires a simple SMS handshake to confirm the device being charged. The company processes hundreds of millions of dollars in transactions across roughly 55–60 countries, with largest markets including the U.K., Germany, Japan, and Taiwan. Boku positions itself as a component of a broader payments ecosystem rather than a direct competitor to mobile wallets. Management says U.S. adoption is not essential to the business, and Boku expects growth from global on-demand services and digital-content purchases. The company is approaching profitability. BOKU operates a carrier-billing and mobile-payments platform used for virtual goods and expanding into physical goods and mobile wallet services. The company works in 66 countries, supports 40 currencies, and has deals with more than 250 carriers covering some 3.2 billion consumers. BOKU processes hundreds of millions of dollars in mobile payments, though it does not disclose exact revenue figures. The new funding will be used to build products beyond virtual goods, including an NFC payments system announced with MasterCard to enable physical‑goods purchases. BOKU is also extending a partnership with Telefonica to become the preferred payment provider for Telefonica’s forthcoming mobile wallet and to enhance carrier billing services. The company continues to serve large platforms such as Facebook and to work with multiple carriers (Telefonica and Vodafone among them). Boku provides mobile micropayments that let users make purchases by entering their cell phone number, replying to a text, and having charges billed to their monthly carrier bill. The company rebranded its consumer platform as Paymo while retaining the Boku name for merchants and acquired competitors Paymo and Mobillcash in June. Boku's service extends to 58 countries and 190 carriers and it has developed mobile payment relationships with over 1,000 game and app developers, including powering payments for Playdom and Playfish. The startup announced 12 new partnerships with online game developers in the past month and is adding carriers in countries such as Brazil and Argentina. Boku faces high carrier fees—previously reported in the range of about 10% to 50%—and is negotiating with carriers to reduce those fees in parts of Europe and beyond. The company intends to use new funding to accelerate international growth and expand product offerings. As of the Series C, Boku has raised $38 million since launching in June. BOKU provides a carrier-billing system that lets users make micropayments without credit cards or bank accounts by entering a phone number and confirming via SMS. The company has expanded its footprint through acquisitions of Paymo and Mobillcash, gaining access to Paymo’s presence in 45 markets and a combined global reach of 53 countries. BOKU has secured partnerships with major mobile carriers (including past Paymo deals with AT&T, T‑Mobile and Virgin Mobile) and intends to launch services on platforms such as hi5, Puzzle Pirates, Aeria Games, Facebook and MySpace apps. Its service targets purchases of virtual goods and games on social networks and mobile applications. BOKU’s growth is constrained by carrier fees, which it reports can range from 10% to 50% of the purchase price — a potential long-term obstacle to margins. The company recently completed a significant funding round to support expansion and integration of acquired assets.

Total raised

$87M

Funding rounds

4

Latest round

Equity

Latest activity

Sep 2016