Compliance-as-a-Service startup Ondato has closed a €3.6M seed extension round led by OTB Ventures, LitCapital and Startup Wise Guys, bringing the total amount raised by Ondato so far to €5.6M. The seed extension sees the addition of experienced institutional investors LitCapital, who will provide strategic support as the startup continues to scale rapidly. The funds will be used to expand the team with a focus on high-calibre hires to support new market expansion, product development and operations.

With the explosion of digital banking and the digitisation of other financial services, customer identification and other aspects of KYC compliance have become unavoidable. However, most financial services companies see customer identification as a burden to overcome and quickly tick off a checklist. On the other hand, a smooth onboarding experience can make all the difference to new and existing customers.

This is where Ondato comes in. The company aims to not only provide the highest standard compliance tools, but help turn compliance into a competitive advantage for its clients. To do so, it offers a multi-functional compliance management suite designed specifically for financial institutions, offering integrated solutions for identity verification, data monitoring, screening, due diligence, risk scoring, and case management, all under a single software as a service (SaaS) model.

“We have grown 4X in the last 10 months and substantially expanded our team size and range of services. The data shows us that there is a need to both deepen and widen the use of KYC services. The additional funds will help us sustain a pace of growth that has beaten our expectations. We are also excited to welcome LitCapital on board to enter our next expansion stage. With their backing as experienced institutional investors, we are well positioned for continued growth and a strong Series A in 2022,” said Liudas Kanapienis, co-founder and CEO of Ondato.

“Ondato has identified a unique opportunity in a booming market and successfully built and marketed a product that goes beyond what any other KYC provider has – a truly comprehensive compliance management software making use of the latest technology. We are impressed with what Liudas and his team achieved during such a short period of time, and we are extremely happy to be able to work alongside them,” commented Šarūnas Šiugžda, Founder and Managing Partner at LitCapital, who is also joining Ondato as a Board Member.

Founded in 2016, Ondato has developed software enabling banking institutions to onboard new clients and manage other compliance functions. The company serves over 200 clients in more than 30 countries operating in fintech, banking, insurance, telecommunications, and other related sectors.

Ondato aims to use the additional backing to further focus on product development and customer acquisition in Europe and the US ahead of a planned Series A in early 2022.

About Ondato
Ondato has established itself as the leading provider of KYC/AML compliance management technology for financial institutions. The company in the last three months grew close to 4x year-on-year, while the number of employees expanded more than four times compared to the previous year (2020). While there are many solutions addressing individual points of pain across the AML/KYC compliance management process on the market, Ondato excels vis-à-vis competitors by providing a complete compliance management suite as a standalone platform, which ultimately saves time and money. Ondato has successfully attracted funding from OTB Ventures, Startup Wise Guys, and LitCapital.

About LitCapital
Founded in 2010, LitCapital is a leading dedicated growth capital investor that invests in the development and growth phases of technologically enabled and advanced companies. LitCapital supports entrepreneurs and management teams with not only financial resources, but also expertise and strategic guidance in areas, such as top talent attraction, strategy and business model development, finance, sales, and add-on acquisitions. LitCapital raised its first fund in cooperation with the European Investment Fund (EIF), and the successor LcX Opportunity Fund is backed by INVEGA, along with local pension funds, family offices, and high-net-worth private investors. More information: Šarūnas Šiugžda, Founder and Managing Partner, sarunas.siugzda@litcapital.lt, www.litcapital.lt

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