A seed fund raising round of €3.8 million has been raised by the Paris-based KYC system Ondorse. Alan, Evy, and Piana are a few financial companies that use Ondorse. Ondorse plans to use the funding to increase both the staff size and European market penetration.
Existing Pre-Seed investors Eurazeo and ISAI led the €3.8 million Seed funding round, which also included angel investors from Stripe, iBanfirst, and Qonto.
Knowing your customer is crucial for financial institutions, as demonstrated by authorities’ imposition of over five billion dollars in anti-money laundering fines in 2022.
However, according to data by Signicat, 40% of clients give up on an application process that took 10 minutes or more, resulting in roughly $3.3 trillion in revenue loss in 2019.
Ondorse’s onboarding form and risk-scoring engine, an approach that seeks to cover the full client journey and help with managing compliance workflows, are where the business steps in to aid.
Eurazeo managing director Nicolas Debock elaborates:
“We have witnessed first-hand the pain of scaling fintechs in Europe in our portfolio. The multiplicity of regulations and data sources to manage across various countries has been a challenge for fintechs crossing borders.”
In the words of Ondorse, some of its clients have reduced a number of manual repetitious processes and reached up to 60% of automatic business account openings.
We are a technological start-up that develops the internet’s infrastructure for business verification. We directly saw and saw how difficult it was for regulators to keep up with the most recent regulations and the fragmented market for verification suppliers. It was especially challenging to integrate this dynamic ecosystem into conventional processes and produce useful data.