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-caliber 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.