Investment from UMAEF Transforms Fintech-IT Group Into Ukraine's First FinTech Unicorn Valued at $1 Billion

UMAEF Funds Fintech-IT Group to $1 Billion Valuation

In a groundbreaking move for Ukraine's tech landscape, the Ukraine-Moldova American Enterprise Fund (UMAEF) has announced its investment in Fintech-IT Group, a leading developer of digital banking solutions. This investment has propelled Fintech-IT Group to a remarkable valuation of $1 billion, making it Ukraine's first-ever FinTech unicorn.

Founded by the talented duo Oleg Gorokhovskyi and Mykhaylo Rogalskyi, Fintech-IT Group has made significant strides in the digital banking sector, particularly with its flagship product, monobank. This neobank, recognized as the number one in Ukraine and ranked second among retail banks, has gained immense popularity, serving a client base of nearly 9.9 million. Its achievements include being featured as one of the top 250 FinTech companies globally and among the top 35 neobanks by CNBC for two consecutive years.

The partnership between UMAEF and Fintech-IT Group is not just a financial arrangement; it signifies the support for innovative Ukrainian companies aiming to make a global impact. UMAEF, which has a rich history of investing in enterprises in Ukraine since its inception in 1994, sees this collaboration as a testament to the robust capabilities within the Ukrainian tech ecosystem. The fund's President and CEO, Jaroslawa Z. Johnson, emphasized that this investment expands UMAEF’s portfolio and reinforces their commitment to supporting outstanding local enterprises driven by exceptional Ukrainian talent.

Fintech-IT Group's integrated software solutions not only empower individual banking customers but also assist thousands of small and medium-sized enterprises (SMEs) in Ukraine by enabling seamless digital payment processing. This is a crucial aspect of Ukraine’s economic development, particularly in supporting SMEs, which form the backbone of its economy.

As part of its strategic plan, Fintech-IT Group intends to use the capital raised to enhance its existing solutions and broaden its suite of services. The focus will be on providing additional financing and business services specifically designed for the SME sector, thus benefitting almost ten million Ukrainians who rely on their services.

The involvement of UMAEF is expected to inspire confidence among other investors, particularly from the U.S., to consider entering the Ukrainian market. With a partnership that already includes internationally recognized companies like Visa and Mastercard, UMAEF's backing could facilitate further investment and perhaps lead to a planned IPO on a prominent U.S. stock exchange.

UMAEF's Chairman of the Board, Dennis A. Johnson, underscored the fund's mission: to generate returns for U.S. stakeholders while fostering the growth of Ukrainian businesses that align with U.S. interests. By continuing to invest in Ukraine, especially amidst the challenges posed by the ongoing conflict, UMAEF aims to play a pivotal role in the country's recovery and reconstruction after the war.

The significance of the deal transcends mere financial metrics. It illustrates the potential of Ukrainian enterprises to innovate and succeed despite adversities, showcasing resilience and ambition in the face of challenges. The success of Fintech-IT Group further establishes the credibility of the Ukrainian tech ecosystem, showcasing the depth of talent and expertise present in the country.

In summary, UMAEF's investment in Fintech-IT Group marks a historic achievement not only for the company but also for Ukraine's burgeoning FinTech sector. This collaboration stands as a beacon of hope and progress, paving the way for continued innovation and investment in the region, ultimately contributing to a brighter economic future for Ukraine.