How Activitis Fintech Company Helps Ukrainian Businesses Overcome Wartime Challenges

The war has struck a major blow to Ukraine’s economy, particularly impacting access to finance. With high risks driving away international lenders and domestic banks raising loan costs to safeguard themselves, working capital—the lifeline for businesses—is now too expensive or simply out of reach. For Ukraine’s SMEs, who lack the banking connections of big corporations, Activitis offers a vital new path forward.

In January 2022, a month before Russia’s full-scale invasion, Activitis launched a project based on the Buy Now Pay Later (BNPL) model, essentially offering installment payments. Unlike popular BNPL services like Klarna or Affirm, Activitis targets businesses instead of consumers, with a clear goal: allow companies to buy now and pay later.

Despite Russia’s war, Activitis did not abandon this vision. Instead, they doubled down, recognizing that Ukrainian SMEs face more challenges now than ever. These companies need working capital for daily operations and resources to invest in growth.

Ukraine has witnessed the rise of dozens, even hundreds, of new business sectors since 2022. Many who had never ventured into entrepreneurship before found fresh opportunities. While SMEs contribute over 50% to some European economies, they represent only about 20-25% in Ukraine—highlighting vast growth potential. But for this growth to happen, accessible, fast, and straightforward financing is essential.

“Our record is 1 hour and 57 minutes from the moment an application is received to when the funds reach the client,” says Pavlo Matiyash, Activitis CEO. “In under two hours, a business, not a consumer, receives funds. That speed is vital,” he adds, emphasizing that fast access to funds is key for successful collaboration with his company.

In 2023, Activitis launched two online installment services for businesses in Ukraine: eDilo (co-funded by USAID’s Business Development Investment Project) and WEAGRO (supported by USAID’s Agri-Program).

eDilo is an online platform that allows businesses across sectors to sell and purchase goods or services on installment—no down payment, collateral, or paperwork required. This business-to-business (B2B) installment service meets market demand for financial flexibility, helping companies manage costs and optimize working capital. eDilo’s online portal lets users register swiftly, streamlining transactions and cutting through bureaucracy.

For sellers, eDilo boosts sales and opens the door to offering higher-value items. For buyers, it provides a straightforward way to purchase goods or services on installment from partners. eDilo facilitates transactions that might otherwise be unattainable, promoting transparency and efficiency in B2B financial relationships, all while saving time and resources by bypassing bank involvement.

WEAGRO focuses on small agricultural enterprises, allowing businesses to quickly and transparently purchase equipment, seeds, fertilizers, and services without collateral or lengthy documentation. This dedicated service was created specifically to meet the needs of this sector. For Ukraine—a key agricultural country with significant export potential—such a platform is essential. Despite the full-scale war, Ukraine remains one of the world’s largest exporters of agricultural products and, in certain sectors, even leads the global market. WEAGRO has also received support from the USAID program, further underscoring the importance of this platform.

Today, Activitis is Ukraine’s leading private financier for SMEs, holding over 20% of the market. How did they get there? 

“We come from the business sector, so we understand it well,” Matiyash explains. “Our solutions are designed around business needs, not banking system constraints. About 36% of our factoring clients had never taken a bank loan before.”

Activitis reached these milestones in just three years, all during Russia’s full-scale invasion of Ukraine. Despite the war, Ukrainian businesses continue to operate, paying taxes that bolster the country’s defense. Activitis plays a vital role, helping businesses not only survive but grow, with total transaction volume now surpassing $200 million.

Activitis is also one of the operational donors of UNITED24 fundraising platform, which has generated over $746 million globally to support Ukraine. 

“Each major fundraiser for Ukraine is backed by a dedicated team,” say Activitis shareholders. “By supporting UNITED24’s operations, we fulfill our role as a socially responsible business strengthening Ukraine’s defense.”