The Sumsub Story

With their innate entrepreneurial mindset, the twins, Peter and Jacob, were always eager to create new ventures. Between 2006 and 2012, they launched several businesses, starting with a web design studio—a hot trend in the 2000s. A client's online phone store inspired them to create their own electronics shop, which thrived until the 2008 crisis hit. Undeterred, they moved on to their next big idea: an interactive city map for tourists with gamified routes to stores and restaurants. The concept even featured AI-driven personalized routes, but they couldn’t secure the investment needed to bring it to life. During this time, Andrew supported them while working his day job in sales. These projects didn’t evolve into a big company yet, but they provided invaluable experience for future success.

In 2012, Peter and Jacob leveraged their design background to detect manipulation in digital images and prevent fraud in areas like car insurance. They enlisted Andrew to establish a business called SMTPD and develop a product named the Picture Manipulation Inspector (PMI), which attracted attention both in Russia and internationally. This was followed by minority investments from several investors, including Ilya Perekopskiy, Flint Capital, and IIDF (an accelerator for early-stage businesses that partnered with Microsoft, Stada, Bayer, and others).

Despite initial interest and several trial customers, including insurance companies and banks, the PMI project did not take off as a business and was ultimately abandoned. PMI faced difficulties because it focused more on technology than on the product itself and overlooked some critical challenges. Targeting large clients resulted in lengthy deal cycles, and the demand for the product was still in its early stages. As a startup, they couldn't afford to educate the market. The brothers were ahead of their time, as the market wasn’t yet ready to recognize the problem they were addressing. However, the project left the brothers with valuable insights into the application of technology to fraud and image manipulation detection. Also during this time, Andrew met Vyacheslav, whose rich tech experience helped the brothers realize the potential for anti-fraud technologies. Eventually, Zholudev became Sumsub’s CTO.

Sumsub’s story begins in 2015 in London, a hotspot for business and networking opportunities. The founders established the company called “Sum and Substance,” derived from a Latin phrase meaning “to the very gist.” While the UK and other European markets were key targets, Sumsub also focused on Russia and CIS markets, aiming to tap into the rapid digitalization of post-USSR economies.

Initially, the company focused on KYC solutions, an emerging trend at the time. In 2017, during the ICO boom, Sumsub spotted a golden opportunity in crypto compliance. With hundreds of companies in their initial stages and short deal cycles, the crypto industry was an ideal testing ground for both the technology and the product. The timing couldn’t have been better—it allowed them to refine and quickly scale their offering to industries like transportation and classifieds, attracting big names like BlaBlaCar, Gett, Toyota, Hyundai, and Avito. Despite a small team, the product's success led to rapid expansion.

In 2017, Sumsub secured its seed round led by Flint Capital and Ilya Perekopsky, who believed in the Sever brothers' new venture despite the previous PMI setback. In 2019, Sumsub closed its Series A round, led by Cyprus-based Metaquotes Corporation, while Flint Capital exited its investment.

A major investment brought big ambitions. In 2017, Sumsub opened an R&D center in Berlin, where Vyacheslav was based, to attract tech talent. In 2019, this was followed by a focus on building top-notch legal and compliance expertise. The strategic addition of an in-house compliance team allowed the company to offer KYB services and paved the way for future growth.

2021 was a breakout year—the company grew more than 4x, driven by the growing recognition of the product’s strengths, which enabled Sumsub to acquire over 600 new customers and sign some of its largest clients.

By the end of 2021, Sumsub, which had initially focused on the CIS and Central Asia (and even became a KYC leader in the CIS at the time), had transformed into a truly global player, with less than 10% of its business coming from Russia and part of its employees already located around the world. However, geopolitical tensions soon prompted a strategic relocation of its wider team.

2022 proved to be a transformative year on many fronts. Early investors, such as Mr. Perekopsky, exited Sumsub, allowing the founders to consolidate their ownership of the company.

In March 2022, in response to the Russian invasion of Ukraine, Sumsub ceased its Russian operations, abandoning its local market leadership. The founders chartered emergency flights from Russia and facilitated the relocation of remaining team members from Ukraine and Belarus.

As the world changed, the company evolved as well. It transformed from a point solution—a solely KYC vendor—into a comprehensive onboarding orchestration platform and introduced a robust transaction monitoring solution.

Despite the very weak market environment in the fintech and crypto sectors in 2022, revenue nearly doubled. The year ended with Sumsub raising its Series B round, securing a multi-million dollar financial boost for the coming years from a corporate VC fund.

In 2023 and 2024, Sumsub maintained its impressive growth, heavily investing in product development and further international expansion. Sumsub opened offices in Miami, Singapore, and Dubai, with team expansion to over 500 people. In 2023, Sumsub’s revenue grew by nearly 50%, with a forecast of 100% revenue growth in 2024.

In 2023, Sumsub launched its Travel Rule solution and added multiple non-document verification methods to its platform. In response to new AI-driven threats, Sumsub also launched its Deepfake Detector, leveraging the high security and accuracy of global verifications.

In March 2024, Sumsub added an enhanced Fraud Prevention solution to its product portfolio. This move set Sumsub apart as the market’s only full-cycle verification platform, soon to be enriched by the integration and further development of DeFi analytics, transaction monitoring, user behavior insights, and e-signing solutions.

In 2023-2024, the company received numerous industry awards and recognitions from the likes of Gartner, Forrester, ICA, and Sigma—while its research materials were cited by Interpol, the UN, and major media.

Looking ahead to 2025-2027, Sumsub is poised to elevate its full-cycle verification platform to new heights, ensuring a secure journey for every customer. The immediate plans include further tailoring onboarding solutions to specific market needs like the Middle East and APAC, and enhancing transaction monitoring and fraud prevention capabilities. Additionally, the company plans to continue investing in localizing business infrastructure, from data storage and processing to certifications.

Finally, it will remain paramount for the founders to foster a safe and inclusive working culture at Sumsub. All these efforts will continue contributing to Sumsub’s mission of driving an inclusive digital future for every honest user worldwide.