Ukrainian startup Electronic KYC raises €250k from Czysta3.VC
The Ukrainian identity verification service Electronic KYC has raised €250,000 from the Polish early-stage investment firm Czysta3.VC. The startup will spend most of the funds on further product development, the Electronic KYC co-founder Denys Galenko told AIN.Capital.
- Electronic KYC was founded in 2020 by Denys Galenko and Viktor Plotnikov. The startup develops a B2B solution for secure identity verification of corporate customers. It includes document authenticity control, 3D liveness check, and video verification as well. Companies from Fintech, Banking, Crypto, MicroLoan, Travel & Hospitality, Insurance, and Healthcare fields use the Electronic KYC app.
- Ukraine became the pilot market for Electronic KYC. As of today, the startup also works with clients from the UK and Africa.
“In Ukraine, we have several clients among traditional international banks launching mobile banking. We also partnered with a few non-banks and microcredit organizations. Unfortunately, the war changed that. Most of the projects were frozen or ceased to exist.
In March, we started evaluating emerging markets and saw potential there. Poland and Africa look interesting,”Denys said.
- Electronic KYC plans to invest 60%-70% of the proceeds in further product development. The rest will be allocated to sales and marketing.
- The investment came from one of the most active Polish venture capital funds Czysta3.VC. As Szymon Janiak, co-founder and Managing Partner at Czysta3.VC emphasized, there is a huge demand for electronic KYC on the market now. “Banks, financial institutions, and loan companies need to be digitalized as soon as possible, or they will disappear from the market. They are looking for solutions that will help them to smoothly go through this process. And KYC & AML are one of the top challenges,” he claimed.
- Answering a question about why Czysta3.VC decided to support Electronic KYC, Szymon said that early-stage VC investments are all about people:
“Denys & his team has shown that they are real fighters. They will push forward no matter what. They faced their personal dramas related to the war, the crisis in the company, Ukrainian market collapse, yet they still managed to keep the company alive & move it to the next level.
To be totally honest, if the team was able to survive such problems, I really don’t know what could stop them…”