Location identity startup Incognia takes its first major step in the B2B2C market in partnership with Serasa Experian

Incognia was born as a business unit of the Inloco localization platform. In 2020, the startup began activities in the U.S. and is already used by 30 million people there

André Ferraz, Founder and CEO at Incognia. Photo: Courtesy/Incognia
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  • Serasa, with more than 500,000 clients, is Incognia’s first major step into the B2B2C market;
  • Last year, the business unit that gave birth to Incognia, called Inloco Media, was sold to Brazil’s retailer Magazine Luiza for an undisclosed amount.

Brazilian startup Incognia announced a partnership with Serasa Experian for fraud prevention in Brazil. Incognia now offers its location-based identity solution for mobile devices on Serasa’s authentication and fraud prevention platform, called CrossCore.

In its technology, Incognia does not use users’ personal information such as e-mail, phone numbers, or biometric data. In some authentication and identity verification processes, however, this data is required by law in Brazil, such as when opening a bank account, for example. “To bring to the market a more robust solution for these more specific processes, which need these additional data verifications, we partnered with Serasa,” comments André Ferraz, CEO, and founder of Incognia, in an interview with LABS.

Incognia has other partners besides Serasa, such as idwall, an identity verification platform, and Brazilian startup Combate à Fraude. “The partnership with Serasa is quite strategic since it is a company that serves a very large number of customers in the Brazilian market.”

Serasa, with more than 500,000 clients, is Incognia’s first major step into the B2B2C market. Recently, the company also integrated with the Argentinean company auth0, an authentication platform that was recently acquired for US$6.5 million by US-based Okta. “We should continue this process of making several partnerships over time.”

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Caio Rocha, executive manager of fraud prevention at Serasa Experian, explains that on the CrossCore platform the customer can put together a fraud prevention authentication strategy using either Serasa’s solutions or those of partners.

Caio Rocha, Executive Manager, Fraud Prevention at Serasa Experian. Photo: Courtesy/Serasa

“It is very common in this market that prevention and identification strategies use more than one vendor so that the strategy becomes stronger and can benefit the end consumer by avoiding friction. There is no silver bullet in the market, there is no single solution that will solve the problem and support companies in this challenge of fraud prevention. So usually companies have three, four partner solutions.”

For example, a digital bank that needs to authenticate a new consumer can do a simple data analysis through the Serasa platform to verify the user’s documents and location behavior, which is Incognia’s job.

Incognia was born as a fraud prevention business unit of the location behavior platform Inloco, which operated mainly in the marketing and digital advertising segment. Last year, this unit, called Inloco Media, was sold to Brazil’s retailer Magazine Luiza, a company that was already a partner of the startup, for an undisclosed amount.

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“Inloco had two business units, Inloco Media and Incognia. With the sale of Inloco Media to Magazine Luiza, Inloco started having only Incognia’s product. So we decided to change the name of the company as well,” explains Ferraz.

Using part of the $18.8 million investment raised in 2019, Incognia began operating in the United States in 2020. The operation is still small (five people are working in Palo Alto and New York), but the startup is managing to protect almost 30 million people in the American market through its customers (Incognia does not disclose names or amount of customers). “Our operation is growing very fast, we are hiring.”

Ferraz says that Incognia planned to raise a new investment round next year, but the accelerated growth of the user base through client companies made the startup anticipate the strategy. “We understood that the product was already validated and it is time to accelerate. We are structuring ourselves to make a fundraising this year.”

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“We were able to reduce the fraud rate of one of our clients by 93%, and we have cases of clients that are managing to increase their mobile payment approval rates a lot”, he says.

For now, Incognia only has teams in the Brazilian and U.S. markets, but it has received requests from companies in other countries. To meet this demand, the startup recently launched a self-service solution: a software tool in which any company can create an account and integrate Incognia’s solution into the application.

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