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Innovating under fire

Russia’s invasion has catalysed a wave of Ukrainian innovation—from battlefield tech to civic resilience

November 4, 2024

6 min read

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November 4, 2024

By

6 min read

News last week that Ukraine’s hugely successful Diia app was named by Time magazine as one of its 200 best inventions would have come as no surprise to anyone who has been following the country’s digital transformation over the past few years. 

Diia, launched in 2020, offers Ukrainians a host of public services in a simple, digital format on their mobile phones, from filing taxes to applying for benefits. Digital versions of passports and ID can also be stored in the app.

Vice Prime Minister and Minister of Digital Transformation Mykhailo Fedorov this week reported that the app is now used by more than 21 million people, or more than 56 per cent of the country’s population.

One of its most recent innovations is a function that allows Ukrainians to marry digitally. One partner proposes through the app, and the other is sent a notification. If the second party says yes within 14 days, the two agree on a date for a video call wedding, complete with official, on the Webex platform. 

The system allows couples separated by the war to marry regardless of their physical location—often hundreds or even thousands of miles apart. More than 600 couples have used the service since it was launched in September. 

A hub of tech innovation

The success, and international recognition of Diia is further evidence of how Ukraine continues to innovate despite Russia’s ongoing war on the country. And while much of this innovation has been government led and concentrated on defence tech, the private sector continues to develop in trying circumstances, cementing its reputation as a hub of tech innovation.

Indeed, Ukrainian start-ups are not only surviving but thriving, continuing to draw the interest of global investors. Russia’s war has accelerated problem-solving, particularly in sectors crucial to both wartime and civilian resilience, like cybersecurity, artificial intelligence, and logistics.  

One of these start-ups is Kyiv-based Reface, an AI-powered app that allows users to swap faces in videos and photos, and which exemplifies a successful Ukrainian export, even amidst an ongoing war. Reface attracted significant attention when it first launched in 2018, but its value has only increased as AI has rapidly gained popularity globally.

Its face-swapping technology has been repurposed to create critical, impactful content during the war, raising awareness about Ukraine’s situation and innovating new digital ways to maintain morale and unity. Investors have remained interested, with Reface securing 5.5 million US dollars in seed funding from Andreessen Horowitz and other global VCs. By enabling creative content sharing, Reface continues to expand its reach in a world increasingly enchanted by interactive and personalised media. 

In wartime Ukraine, security is paramount, and Ajax Systems, a home security and smart alarm company based in Kyiv, has thrived by addressing this need. The conflict has highlighted the importance of robust security systems, and Ajax’s products have been put to the test on home soil.

The company, known for its user-friendly app and high-quality equipment, has expanded rapidly throughout Europe, capitalising on the increased demand for comprehensive security solutions. Its security systems are now also available in the United States. Ajax’s ability to operate and innovate in a war zone has inspired investor confidence, leading to its successful Series A and B rounds worth more than 11 million US dollars, which have helped it scale manufacturing and R&D. 

Ukrainian defence tech start-up Swarmer, which specialises in automated solutions for coordinated groups of drones, closed a 2.7 million US dollars seed funding round in August, led by US defence technology company R-G.AI.

Swarmer says its technology is already being used by combat units in the armed forces. In the future, the development will be scaled up for implementation in the defence strategies of democratic countries around the world.

Resilience in uncertain times

The pet tech start-up Petcube has managed to secure for itself a unique position, blending technology and pet care in a way that resonates with pet owners globally. Known for its interactive pet cameras that allow remote communication, Petcube has turned into a lifeline for Ukrainians separated from their pets due to the conflict.

The surge in remote pet care demand has helped Petcube continue expanding, winning new funding rounds even as the war disrupted supply chains and operations.

Backed by Almaz Capital and Y Combinator, amongst others, Petcube has successfully proven that adaptability can turn challenges into growth opportunities. By developing features that address the needs of pet owners in crisis, Petcube has shown that empathy-driven technology resonates with users—and investors. 

As Ukraine’s economy and banking infrastructure face ongoing threats, start-ups like Finmap have stepped in to provide essential tools for businesses navigating these turbulent times. Finmap offers real-time cash flow management solutions for SMEs, an invaluable service for enterprises grappling with economic disruptions. Ukrainian entrepreneurs are drawn to Finmap’s platform, which provides a comprehensive, easy-to-use interface for managing finances in uncertain environments.

As global investors look to support Ukraine’s economic stability, Finmap has successfully attracted funding, including one million euros last year in a round led by SMOK Ventures. The company’s growth is a testament to the demand for fintech solutions that can stabilise businesses in uncertain times. 

How war has catalysed Ukrainian innovation 

The Russian invasion has presented profound difficulties, but it has also spurred unprecedented resilience in Ukraine’s tech ecosystem.  

With access to traditional resources limited, Ukrainian start-ups have turned to international partnerships, tapped into remote working models, and increasingly leveraged AI and blockchain technologies to fill critical infrastructure gaps.  

The war has heightened Ukraine’s focus on cybersecurity, fintech, and scalable SaaS platforms, leading to a steady flow of investor interest despite the risks. 

Ukraine’s ability to innovate and adapt under pressure has redefined what resilience looks like. These start-ups not only reflect a nation’s grit but also signal a long-term transformation in how tech ecosystems can thrive in adverse conditions.  

As the global community watches, Ukraine’s tech sector will likely continue to grow, with each investment serving as a vote of confidence in the country’s future and its strategic importance in the global tech landscape.

Marek Grzegorczyk

Marek Grzegorczyk

Marek Grzegorczyk is an analyst at Reinvantage.

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1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

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Traditional fixes (more meetings, more reporting) only created more noise.

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4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

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By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
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Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
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The client came in believing they needed more budget.
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These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
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