Spanish startup Arengu has raised €500,000 in pre-seed funding for its low-code customer onboarding tool. The round was led by K Fund, with participation from Lanai Partners, angel investor Rafael Garrido, and VIKO, a digital marketing group. The startup aims to develop a password-free online sign-up process.
Arengu allows companies to create and control online forms on any device, simplifying a user's login and optimising the onboarding flow from that point on.
“As users, we are tired of sharing our email and password over and over again to signup or login on a web page or app. On the other side, companies are concerned that this information is stored safely and that the user experience is as smooth as possible for the final user,” said Jacobo Vidal, CEO.
So he, along with two other young Galician entrepreneurs, Sergio Regueira and Pablo Castro, founded the SaaS company in Vigo in 2018.
Now the tool has evolved to suit more complex use cases, with the ability to connect to any system. The benefits can include higher sign-up conversions and more effective paid advertising campaigns.
In light of security concerns, Ageru has added data verification processes that prevent fraud and filter out spam at the point of sign-up. This feature had a huge effect for one customer, a Mexican company called Grupo Posadas.
“In some cases, we discovered that 65 percent of users were fake, and we blocked 95 percent of these signups in their CRM, improving their database’s quality and generating an exponential growth on their campaigns,” Vidal states.
Yet given the massive online password leaks and growing threats to cybersecurity, the Spanish startup thinks such verification processes are not sufficient. Perhaps the answer is to do away with passwords altogether.
“Arengu wants to innovate, striving to a password-free integration on forms, reducing the users' vulnerability against a cyberattack on their data. We know that in the next few years, passwords will disappear, simplifying the process, avoiding technical issues and security breaches for companies, and optimizing user experience so they can signup with just one click, without the need of passwords on every webpage or app,” Vidal explained.