In a nutshell
- Polish-founded Authologic specializing in orchestration and aggregation layer for local KYC & AML methods secured $8.2 million (7.6 million euros)
- Authologic’s Series A funding round was led by OpenOcean, with additional participation from YCombinator, Peak Capital, and SMOK VC.
- Their platform enhances traditional KYC methods by integrating digital e-IDs, making identity verification faster and more secure. Authologic’s founders are Krzysztof Klimczak (CEO) and a team of YCombinator alumni with deep experience in fintech and digital identity solutions.
Veterans strike again
Authologic, global digital identity verification platform, has raised €7.6 million in its Series A funding round. The round is led by OpenOcean with participation from YCombinator, Peak Capital, and SMOK VC, which already invested through their pre-seed round.
Authologic’s platform is transforming identity verification by enabling businesses in industries such as financial services, gaming, and telecoms to seamlessly integrate e-ID (electronic identity) systems into their KYC (Know Your Customer) and AML (Anti-Money Laundering) processes.
As the rise of AI-driven fraud makes traditional KYC systems increasingly vulnerable, Authologic offers a robust solution to help companies stay secure and compliant, particularly as governments across the globe mandate the adoption of e-ID wallets and digital identities.
The company participated in Y Combinator’s startup accelerator program in 2021, which provided it with mentorship, resources, and funding to help grow its business. Beyond that initial push, it definitely makes a difference that the founding team consists of seasoned experts from the industry: Jarosław Sygitowicz, Krzysztof Klimczak, and Marek Rogoziński, who before Authologic co-founded ZenCard, Polish deep fintech startup that was sold in 2017 to the PKO Bank Polski.
Solving the problem of outdated identity verification
The founders of Authologic, led by Krzysztof Klimczak, started the company after encountering significant challenges with traditional KYC processes while working in the banking sector.
Legacy KYC processes often rely on photos of physical ID cards and manual verification using OCR (Optical Character Recognition) and liveness checks (selfies). These methods are not only slow and cumbersome but are also becoming obsolete in the face of AI-generated deepfakes and fake documents. According to Authologic’s founders, relying on such methods exposes businesses to a higher risk of fraud and compliance failures.
Authologic solves this issue by aggregating over 40 e-ID systems from around the world, allowing businesses to automatically verify identities through digital and secure e-IDs. This process should be faster, more secure, and integrate seamlessly with existing KYC infrastructure, significantly boosting current identity verification methods rather than replacing them.
As eIDAS 2.0 regulations, set to be enforced across Europe, will require companies to accept government-issued e-IDs, Authologic provides a vital service in helping companies adopt this new standard without significant disruptions to their workflows.
Better experience for users and fewer problems for businesses
Authologic’s platform caters to industries where identity verification is critical, including neobanks, fintech companies, telecoms, gaming and e-commerce platforms. Use cases include: Opening a bank account or investment account; buying a SIM card; purchasing restricted goods; onboarding sellers on e-commerce platforms like Amazon etc.
By offering instant verification through e-IDs, platforms like Authologics aim to enhance the user experience, reducing the manual effort and time required for customer onboarding. This leads to faster sign-ups, reduced fraud risk, and lower operational costs for businesses while providing a frictionless UX.
The global digital identity market is expected to grow rapidly as businesses increasingly look to streamline this process and comply with tighter regulations. So, it is not a wonder Authologic is not alone in this market. Competitors include Norwegian Signicat, Danish Criipto, and Croatian Identyum, which all provide digital identity verification solutions.
Authologic differentiates itself by offering a unified API that integrates multiple e-ID systems globally, making it easier for businesses to adopt digital identities without overhauling their existing KYC processes. Instead of focusing on replacing legacy systems, Authologic focuses on enhancing them by integrating e-IDs alongside traditional KYC methods, providing flexibility and ease of use for businesses transitioning to e-ID-based verification.
Tackling compliance challenges
Founded in 2021, Authologic already has over 80 clients across various sectors, including names such as: Santander Leasing, eToro and Superbet.
Expanding its e-ID infrastructure internationally, Authologic now operates in Europe, the UK, Latin America**, and the Middle East. The company has successfully integrated with over 40 different e-ID systems, which presents both opportunities and challenges, as Sygitowicz shared with The Recursive. For instance, integrating e-ID systems in the Middle East has proven particularly challenging due to the region’s complex regulatory environment.
In Europe, Authologic is committed to adhering to GDPR and other relevant data protection laws. The company also holds an ISO27001 certification for information security and a PSD2 AISP license for managing banking data.
Scaling the digital identity
The Series A funding round positions Authologic for continued expansion, with the goal of creating a global e-ID Hub that supports businesses in adapting to the future of digital identity. By bridging the gap between legacy KYC systems and digital-first e-IDs, Authologic aims to simplify and automate identity verification processes, particularly for companies in heavily regulated industries like banking, telecoms, and crypto.
CEO and Co-Founder Krzysztof Klimczak emphasizes the importance of building a trust-based identity layer on the internet, noting:
“Identity is the foundation of a well-functioning society. If we can’t be sure who we’re dealing with online, it undermines trust in marketplaces, social interactions, and even democracy itself.”
Authologic’s investors share the company’s vision of reshaping the future of digital identity. Tony Nysten, Partner at OpenOcean, noted, “The Nordics have led the way in using digital identities for decades, and now, with Authologic’s platform, we believe a global revolution in identity verification is on the horizon. Secure, efficient, and easy-to-use identity verification is something the market desperately needs, and Authologic is delivering just that.”
