Product

Consider a world where you can travel without ever queuing at the airport or buy a house in a matter of clicks. Efficient KYC/AML processes are key to make this future a reality.

What is KYC (Know-Your-Customer) / AML (Anti-Money Laundering)?

Think of every time a financial institution has asked for a copy of your passport or proof of address etc.

Businesses also incur significant revenue loss due to the friction caused by the current KYC onboarding experience.

Now consider a world where you can reuse KYC checks…

Magic offers a one-click KYC check through a verified user marketplace, eliminating the need to repeatedly collect information.

Streamline - With seamless integration into your existing KYC tech stack, businesses can easily provide a one-click experience.

Earn - Generate additional revenue by participating in the verified marketplace

Data - Eliminate the burden of storing sensitive data and reduce operational overhead

Founders

Thanasis Mandaltsis, Co-Founder & CEO - Previously an early employee of Onfido, from series A to pre-IPO, and has led strategic projects including SSI innovation. Thanasis also led Government Projects at Onfido and product at a blockchain identity startup, iov42.

Aariffa Hajamaideen, Co-Founder & CTO - Previously led enterprise engineering teams as part of Accenture and Nationwide. Seasoned software architect who has successfully delivered enterprise software products at scale for Tier 1 enterprises globally including Shell, Saudi Aramco, and Dow.

Spotlight Analysis

Strengths

• Network effect: the value of Magic grows as more businesses join the verified marketplace, creating a powerful network effect

• Unique advantage: the majority of existing KYC tech solutions are likely to cannibalise their core product if they launch a similar offering

• New revenue stream: participating in the verified user marketplace enables businesses to generate additional revenue, offsetting compliance costs

Weaknesses

• Critical mass: initial customers will have limited benefits of the one-click experience due to a small number of verified users in the marketplace

• Building trust: businesses need to see robust standards which safeguard their customer’s data before joining the marketplace

Market

Yoti - Raised £10m post-Series B from Lloyds Banking Group in Feb 2023

Airside Mobile - Acquired by Onfido for an undisclosed amount in May 2023

And a plethora of KYC tech providers who can consider launching this - potentially at the cost of their core product.

Key Details

Year founded: 2023

Summary: Magic offers a one-click KYC check through a verified user marketplace, eliminating the need to repeatedly collect information.

Raised to date: Bootstrapped

Currently raising: Yes, £300,000 with £60k unallocated

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