Fintech and ecommerce

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Alex Pasykov

Alex Pasykov (he/him/his) is the Ukrainian co-founder and CEO of Hily & Taimi dating apps, with 28M and 15M users respectively. Since 20 (show all) Alex Pasykov (he/him/his) is the Ukrainian co-founder and CEO of Hily & Taimi dating apps, with 28M and 15M users respectively. Since 2017, Alex has been introducing worthy dating alternatives to make people’s lives easier. While Hily helps people find partners based on their shared interests and compatibility, Taimi is the dating app that empowers LGBTQ+ people with the entire spectrum of dating options. Alex is pursuing his mission to help people date easily and has built a successful business with a $40M turnover.

This article is by Alex Pasykov, CEO and founder of dating apps Hily and Taimi, who will be speaking at TNW Conference, which takes place on June 15 & 16 in Amsterdam. If you want to experience the event (and say hi to our editorial team!), we’ve got something special for our loyal readers. Use the promo code READ-TNW-25 and get a 25% discount on your business pass for TNW Conference. See you in Amsterdam!

2023 has been a rough year for startups. Getting funding has become increasingly difficult, and this is no different for the dating app industry. Investors want dating businesses to operate effectively without raising investment. Dating companies that combine technological solutions with a strong brand have an advantage in further expanding their user base through organic growth, performance marketing, and paid acquisition. Thus, it’s now more important than ever to align product strategy with trends to build a sustainable dating business.

AI and the future of dating apps

Generative AI might be the breakthrough technology of 2023, but for dating apps, its possibilities are limited. We will likely see some features that help users to start a conversation faster or better than just: “Hey, how are you,” using AI-generated prompts and prescribed icebreakers. But because users will still want to chat with other real people, dating apps can’t just let large language models impersonate users on the platform. Nobody wants to date a chatbot in the real world.

However, AI can be integrated to improve algorithms and make dating apps run smoother. For example, it helps suggest people to connect with, based on a user’s preferences and usage history. And although chatbots cannot replace users on the platform, they can offer quick and efficient customer support. So dating apps can use large language models to answer user questions or help with other queries.

Greater Segmentation and Personalization

In the near future, dating apps are heading towards greater personalization for segmented audiences. Since Tinder’s breakthrough in 2012, it has catered to all audiences. But now, apps are gradually evolving and begin to cover more specific dating preferences for specific audiences. So, instead of one big app covering all needs, we have different apps created for different audiences and dating interests — like polygamous relationships or dating for Christians.

While segmentation is a growing trend, extremely niche apps like pro-vaxxer/anti-vaxxer apps, might not have the most sustainable business model. By drastically narrowing your audience and relying on a tiny user base, you introduce risks that could make it hard to raise funding or provide desirable metrics to investors, regardless of how cool your idea is.

While some dating apps focus on specific audiences, others focus on specific needs. For example, there are apps where you can indicate your preference for a one-night stand as opposed to a long-term relationship. There is a catch, though: when apps focus on specific audiences, like people looking for hookups, users are likely to switch to other dating apps that serve more needs than such nuanced experiences.

The future of dating apps

While it has become increasingly hard to raise funding, the online dating landscape has become more complicated as well. The biggest issue is still that most dating apps run on business models that need users to keep using the apps as long as possible, as opposed to quickly satisfying their needs. That said, dating apps that can successfully shorten the time between a first like and an actual meeting will likely succeed in the long-term.

In this regard, niche apps catering to specific audiences or needs, are leading the way. These apps set the standard for service quality for their targeted users and will elevate the level of service. If larger apps can learn from their experiences by integrating and effectively serving those segments within their own apps, it will accelerate business growth and acceptance of these apps in society.

The purpose of dating apps is not to make every user fall in love with each other, but to give them the freedom to pursue what they want — romantically or sexually — at any given moment. Today, someone might be looking for a date, tomorrow a casual hookup, and the day after that, a long-term relationship. By understanding the complexities of online dating and staying in tune with users’ evolving preferences, dating apps can increase their chances of success in key business metrics that matter to investors.

Check out Alex Pasykov’s talk at TNW Conference on June 15-16 to learn more about successful go-to-market strategies. Use the promo code READ-TNW-25 and get a 25% discount on your business pass for TNW Conference.

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Michael Schlein will be speaking at TNW Valencia 2023 about How fintech innovation can drive inclusive growth. Check out this discussion on the Impact stage on Thursday, March 3oth.  

The world has changed so much over the past few years. The global pandemic, the war in Ukraine, worsening climate change, widespread social unrest — all these challenges have had major consequences for families, small businesses, and communities globally. For the first time in our lifetimes, global poverty and hunger are on the rise, and the economic environment remains uncertain and unstable.

As challenges evolve, so do solutions. While today’s challenges seem overwhelming, we’re also seeing powerful opportunities to build a fair, inclusive, and resilient economy. According to the 2021 Findex, more than a billion people gained access to formal financial accounts over the past decade — thanks to a digital revolution accelerated by the pandemic. This is very encouraging progress.

But 2 billion people remain excluded from the global financial system — and they will be much harder to reach. They are smallholder farmers, micro and small businesses in remote areas, and, more often than not, women.

As more people gain basic financial tools, they can use them to improve their lives — and access a broader suite of tools to build resilience. A farmer can purchase insurance to protect against climate disasters, a small business owner can access revolving credit to manage supply chain issues, and an aspiring software developer can save money and gain new skills to boost her income.

Inclusive fintechs are uniquely positioned to maximize these opportunities — and respond to challenges. Accion helped pioneer the field of inclusive fintech by launching one of the world’s first global fintech funds for the underserved, and by nurturing innovators with funding and support, we’ve seen how they can disrupt the status quo to deliver meaningful social change.

Today, we’re particularly excited by three fintech innovations with the potential to facilitate this momentum, and address the challenges disproportionately affecting underserved communities globally:

1. Embedded finance

While traditional finance often requires customers to jump through hoops, embedded finance makes it possible to offer services to customers upfront, using their data to anticipate their needs and credit risk.

For example, Accion’s seed-stage inclusive fintech investor, Accion Venture Lab has invested in Cashinvoice in India, which leverages data on small businesses to embed supply chain financing products in large platforms that small businesses already use, like suppliers of inventory for fast-moving consumer goods stores. This innovative practice has the potential to seamlessly equip millions of underserved people with the financial tools they need to improve their lives.

As more financial tools integrate with every aspect of the digital economy, we’re seeking to scale innovations that create new entry points for embedded finance in platforms that our end clients already use, like retailers selling seeds to smallholder farmers. We believe embedded finance solutions focused on reaching farmers, small businesses, and women have great potential to advance resilience and inclusion.

2. Agtech finance

Two thirds of the world’s working poor make a living through agriculture, and they are increasingly vulnerable to climate change. By equipping farmers with new financial tools and digital capabilities, we can help them build resilience. And in the relatively new field of agritech, we’ve seen exciting innovations emerge over the past few years that have great potential to generate social impact.

We’ve already seen encouraging results through our work with agtech fintechs like PULA and Apollo Agriculture that leverage technologies including satellite imaging and mobile apps to equip smallholder farmers across sub-Saharan Africa with crop insurance, customized advice, and credit. Through digital transformation and fintech integration, we’ve also deepened the impact of microfinance providers like Fundación Génesis Empresarial in Guatemala and Dvara KGFS in India that provide credit and other financial services to farmers.

As agtech finance continues to evolve, we’re particularly interested in targeting other service providers within the agricultural value chain, including aggregators, farmer-allied intermediaries, and distributors, to help them serve farmers and their communities more effectively.

3. Future of work finance

Increasingly, people are earning a living through non-traditional employment models, including gig or informal work, and they are particularly vulnerable to financial shocks. By nurturing financial service providers focused on these populations, we can help them gain a stronger foothold in the economy and strengthen their resilience.

For example, our fintech partner MyRobin has created a digital platform that provides blue-collar workers in Indonesia with access to fair employment opportunities, training, and financial services that strengthen their resilience and advance their careers, and our partner UGAFODE in Uganda is helping refugees start businesses and access financial tools.

In the short-term, we’re exploring opportunities to support workers shifting from informal to formal work through gig work platforms, prioritizing those that cater to women. In the long-term, we may also consider the global implications of automation, migration, and displacement on the workforce —and how solutions like cross-border payments and upskilling can help these workers build their financial health.

Accelerating change through knowledge and collaboration

Sharing our knowledge is critical to creating systemic change. Convenings like TNW Valencia are essential to share insights and explore the impact of new innovations — including those in embedded finance, agtech, and the future of work — to better gauge the effectiveness of our own work, and promote demonstration models that enable providers to better serve their clients.

I’m excited to work with our team — and with partners across the public, private, and social sectors — to scale our impact. The future is uncertain, but the challenges of the past have granted us new lessons, powerful tools, and greater resolve to support people with the most urgent needs.

Interested in learning more about inclusive fintech and Accion’s work in this field? Come check out Michael Schlein’s FT Power Hour talk on How fintech innovation can drive inclusive growth at at TNW Valencia 2023 on Thursday, March 30th from 13: 05-13: 25 on the Impact stage.