Kfar-Saba, Israel - Modu, the developer of a small mobile phone that can be slipped into a wide variety of branded "jacket" enclosures, as well as other consumer electronics that connect to the Internet, has raised $7 million in new financing from Qualcomm (NASD: QCOM), and signed a deal with the wireless giant to manufacture its product, TechCrunch reported, citing the Hebrew-language Calcalist.

Kfar-Saba, Israel - Modu, the developer of a small mobile phone that can be slipped into a wide variety of branded "jacket" enclosures, as well as other consumer electronics that connect to the Internet, on Thursday announced that it will launch its phone in October with wireless carriers in Italy, Russia and Israel. The basic Modu is similar in size and appearance to Apple's iPod nano, and with the interchangeable jackets the device is about the size of an average mobile phone.