NtechLab (Ntech Lab)

Performance indicators

2022:35% increase in sales

NtechLab's revenue increased 35% in 2022, and sales overseas nearly doubled. The company reported this in mid-January 2023.

According to Kommersant, citing data from the SPARK-Interfax system, in 2021 NtechLab raised 1 billion rubles, and net profit amounted to 88 million rubles. Thus, in 2022, the company earned 1.35 billion rubles in revenue.

NtechLab claims that since 2018, its CAGR has exceeded 100%. In foreign markets, revenue is increasing thanks to new projects in the Middle East, Southeast Asia and the CIS, according to a company spokesman. In total, in 2022, the solutions were sold to 26 countries, he added in a conversation with the publication.

NtechLab revenue up 35% in 2022

The segment of solutions in the field of artificial intelligence as a whole "looks key to achieving leadership in a new technological way," so the industry is growing in this direction in all leading countries of the world, says Valentin Makarov, President of NP Russoft. According to him, despite the sanctions, Russian developers did not lose customers in other countries, but for this they had to localize sales offices. According to Dmitry Markov, foreign companies are ready to invest in Russian developments, since "they are more affordable and at the same time not inferior or even superior to their foreign counterparts in quality."

In 2022, it became known that NtechLab pine farmers Alexander Kabakov and Artem Kukharenko left the company's management. According to data from the Cyprus register, Kabakov's place on the company's board of directors was taken by Alexei Panyushkin, head of the planning, analysis and strategy department of Alfa Capital Management Company. It was reported that Kabakov and Kukharenko advocated the development of international projects, but investors were of the opinion that the company should combine two areas of activity - Russian and foreign.^[1]

History

2024: New CEO - Alexey Palamarchuk

In January 2024 , Alexey Palamarchuk was appointed the new CEO of NtechLab. In this post, he replaced Sergei Suchkov, who will focus on strategic development and remain part of the company's management and supervisory bodies, NtechLab told TAdviser.

2023: Appointment of Sergei Suchkov as CEO of NtechLab

On July 12, 2023, it became known about the appointment of Sergei Suchkov as the new CEO of NtechLab. He replaced Andrei Telenkov, who in the company will deal with projects aimed at increasing the shareholder value of the business. Earlier, under his leadership, the company demonstrated significant growth both in terms of financial indicators and a portfolio of technological and product solutions, and also implemented a number of large projects, the press service of NtechLab reported. Read more here.

2022

Opening an office in Thailand

On September 19, 2022, it became known about NtechLab's decision to open an office in Thailand in order to establish sales of products in Southeast Asia. In particular, the companies are interested in promoting their technologies in countries such as Thailand, Malaysia, Indonesia, Vietnam and the Philippines.

In these states, according to Kommersant, the company has formed a pool of partners of 20 vendors and launched several pilot projects in the field of face recognition.

Russian NtechLab opens an office in Thailand

In August 2022, NtechLab commercial director Liana Meliksetyan told the Bangkok Post that the company's business in 2021 grew by 40% in Southeast Asia, and by 40% since the beginning of 2022. Therefore, the developer sees Thailand as the potential headquarters of NtechLab Asia. Meliksetyan called the country "the driver of digital transformation in the region."

Experts interviewed by Kommersant point to the specificity of work in Southeast Asia from the point of view of legislation. With the entry into the Asian market, according to the chief operating officer of an industrial developer, problems ON SimbirSoft Dmitry Peterson may arise related to the difference in safety standards.

{{quote 'In the Russian Federation there are requirements of the Federal Service for Technical and Export Control, 152-FZ "On Personal Data," in Europe - GDPR, in other regions - their different analogues, - he explained. }} The chairman of the board of directors SearchInform"" Lev Matveev notes that Russian software it is often "difficult for foreign buyers to trust strangers," so companies have to act through partners and local representatives. This may take time and additional funds. Birch Legal partner Anton Bakov agrees that in the region where NtechLab goes, personal connections are traditionally of great importance, and in some cases their presence is critical.^[2]

The departure of the founders from the company

The founders of the Russian artificial intelligence company NtechLab, Alexander Kabakov and Artem Kukharenko, resigned due to disagreements with management and investors. This became known on March 30, 2023. Read more here.

2021

As of May 2021, the founder of NtechLab (Ntech Lab LLC) is one foreign legal entity: N-Tekh.Lab LTD (data from the Unified State Register of Legal Entities).

Recognizing the face recognition algorithm as the best in the world

On May 25, 2021, NtechLab, a technology partner of Rostec State Corporation, informed TAdviser that the National Institute of Standards and Technologies of the US Department of Commerce (NIST) recognized the NtechLab algorithm as the best in 7 independent tests, and three of them set a record for the entire history of^[3] tests].

Russian facial recognition algorithm recognized as the best in the world

NIST's FRVT testing is a recognized global competition of algorithms, face recognition including one designed to help the Ministry trade USA identify the world's best providers of such software solutions. It corresponds to the scenario of confirming the identity of a person from a photo. This scenario is used in a large range of civil, law enforcement and national security programs, including photo verification on visa documents and when issuing passports, as well as in payment systems using (" biometric data face to face").

The FRVT evaluated more than 100 algorithms from developers from a large number, countries of the world including the China United States and. Israel FRVT testing was carried out on several photo databases. When summing up the results, the accuracy and speed of the search, as well as the adaptability of the algorithm to subsequent changes, were taken into account. The NtechLab algorithm has become number one in working with, bases Visa Visaborder and Border, which contain images identical in quality to photographs taken when crossing the border and from visa permits. According to the results in working with these databases, NtechLab showed the best results in the history of the NIST competition. In addition, NtechLab entered the top three in terms of face recognition performance. medical masks

{{quote 'author = said the founder of NtechLab, head of the company's neural network laboratory Artyom Kukharenko.|Since competition has been growing all these years, and the accuracy and speed of competitors' algorithms has increased, we can confidently say that the NtechLab intelligent video analytics algorithm is the best in the world in a number of parameters. To obtain this result, NtechLab engineers used innovative approaches to training neural networks, as well as algorithms for processing and preparing data for machine learning. The results of these developments are already being used in NtechLab products and will improve the comfort and safety of smart cities around the world, }}

Grant of 74.5 million rubles for the development of technology for finding a person based on the detection of his silhouette

Russian Development Fund information technology () RFRIT January 12, 2021 announced TAdviser the results of two competitive selection for grants: support for projects for the implementation of domestic IT solutions (PP RF No. 550) and support for development projects (PP domestic software RUSSIAN FEDERATION No. 1185).

NtechLab specializes in neural network solutions. A grant in the amount of 74.5 million rubles will be allocated for the development of a solution for recognizing a person based on his silhouette, as well as the integration of this recognition technology into the company's existing development - the FindFace biometric system. This development will lead to an increase in the speed and accuracy of the search for people, and will also allow more efficient determination of the trajectory of the object of observation. The algorithm is also capable of recognizing a person's gender, age and emotions. Read more here.

2020

NtechLab will invest 1 billion rubles in its products and going abroad

NtechLab will invest more than 1 billion rubles in the development of its products, in particular in their promotion abroad. This was announced on September 24 by the general director of NtechLab Andrei Telenkov.

According to him, the funds will go both to promote the company's solutions in the Middle East, Southeast Asia and Latin America, and to improve existing and create new products, in particular those aimed at foreign customers. The investment of funds has already begun, during which period it is planned to spend them for the indicated purposes, he did not disclose.

New products financed by NtechLab are solutions in the field of computer vision, - said Andrey Telenkov. (photo - press service of TSIPR)

In Latin America, we have already opened an office, in the near future we will open other offices, possibly in the Middle East, "Telenkov informed.

He also noted that the company makes products for both government customers and businesses.

For government customers, we make products in the sphere of a safe city. Such products are in demand, so we are talking about their replication - both in the regions of Russia and abroad. Similarly, we are going to replicate products for business. Among them, in particular, identification solutions and smart analytics. Among the clients of NtechLab are companies from the banking and financial sector, from the hospitality and entertainment industries, as well as shopping centers and retail, - said Telenkov.

New products that the company has financed - solutions in the field of computer vision. We are talking, in particular, about products for enterprises from the entertainment industry, banks, shopping centers and companies from the hospitality sector, as well as solutions in the field of:

• automatic determination of aggressive human actions;
• car recognition, including tracking the transportation of household waste and compliance with the rules for its processing.

The company received funds for development from the Russian Direct Investment Fund (RDIF) and a number of leading sovereign wealth funds of the Middle East^[4].

According to the head of the RDIF Kirill Dmitriev, NtechLab technologies have significant export potential to foreign markets and are of great interest in other countries.

The use of biometric recognition systems in everyday life, at public events, when introducing new products by banks and in a number of other areas will help significantly increase the level of security, including the fight against a new coronavirus infection. The investments of RDIF and partners will support the launch of new products by the Russian company to the global market, - said Kirill Dmitriyev.

He also added that the global expansion of leading Russian companies in the field of high-tech developments based on AI is a priority for RDIF as a center of competence in this area.

New General Director - Andrey Telenkov

In early April 2020, it became known about the change of CEO in NtechLab, a company developing facial recognition systems and other biometric technologies. From March 31, Andrey Telenkov began to lead the company. Read more here.

2019: Partnership Agreement with Netris

Logo in 2019

On December 17, 2019, Not Tris"" reported that it had signed partnership agreements with NtechLab. The parties plan to introduce recognition persons in street cameras in the regions where Netris operates. In particular, algorithm FindFace NtechLab already works on 250 video streams from city surveillance cameras. Tyumen More. here

2018

Rostec and NDF bought out Ntech LAB's stake

At the end of March 2018, it became known that the RT-Business Development holding of the Rostec state corporation and the NDF investment fund bought a stake in the Russian startup NtechLab, the developer of a face recognition algorithm, which features the ability to determine an individual's emotional state, gender and age. Rostec's subsidiary became the owner of 12.5% of NtechLab + 1 share. In turn, the NDF fund, managed by Vardanyan, Broitman and Partners, acquired 25% of the technology company + 1 share. NtechLab's operations management will continue to be handled by the founders, who have retained the position of controlling shareholders. The financial terms of the transaction were not disclosed.

NtechLab plans to use the funds raised to further develop face recognition technology and promote it in foreign and domestic markets.

This is a strategic portfolio investment, with a long-term interest in the project. The deal is completely complementary to Rostec's strategy, the priority of which is to enter rapidly growing civil markets. The development of our partner is a truly breakthrough product that has great prospects in Russia and abroad. Entering the project will allow Rostec to include NtechLab and the company's developments in the work of transforming the technological structure and developing the digital economy. We analyzed the global market and assess the capitalization potential of a company with such technology in the future for 5 years in the corridor of $1 billion, - commented on the deal Vasily Brovko, Director-at-Large of Rostec.

As specified in the state corporation, face recognition technology will become an important element of Rostec's large projects in the field of public safety, related to technologies "Smart City" video surveillances and infrastructure. Another area of ​ ​ development is the sale of technology for use in retail,, where to trade banking services entertainment industry it is in demand by private business.

NtechLab is interested in attracting strategic investors to develop the technology. We believe that the symbiosis of public and private capital will allow NtechLab to enter the market of national security systems, Smart City projects and the digital economy, on the one hand, and give a powerful impetus to the global development of the company in the commercial sector, on the other, - said for his part the founder of NtechLab Artem Kukharenko.

In general, as of 2018, the owners of NtechLab were:

• Kukharenko Artem Igorevich - 25%
• Oleg Vadimovich Bratishko - 17%
• Gusev Anatoly Vyacheslavovich - 17%
• Alexander Vladimirovich Kabakov
• ImpulseVC
• RT-Business Development (RT-RB) - 12.5%
• NDF (Vardanyan, Broitman & Partners) - 25%

Products and Services

NtechLab's main activity for March 2018 is the development of algorithms that combine the experience of human intelligence and the high efficiency of machines. NtechLab's algorithm is recognized as the world's fastest and most accurate facial recognition technology. It allows you to recognize faces with an accuracy of 80% in a database with a volume of up to half a billion images, with a base size of several thousand faces, the recognition accuracy reaches 99%. Finding a specific person among 1 billion faces takes less than half a second. A distinctive feature of the algorithm is its ability to determine an individual's emotional state, gender, and age.

2017: Investment from Impulse

The Russian NtechLab team, which develops a facial recognition algorithm, received funding from the ImpulseVC fund, one of the first investors of which is Roman Abramovich. Private investors also took part in the deal, including the deputy head of Tele2Alexander Provotorov. The total investment amounted to $1.5 million.

2015: Beating Google

December 7, 2015 it became known about the victory of N-Tech.Lab in the world facial recognition championship The MegaFace Benchmark. The event was organized and held by the University of Washington^[5].

The algorithm created by N-Tech.Lab was able to bypass more than 100 solutions from competitors, including the Facenet program created by Google.

N-Tech.Lab has created a unique algorithm based on neural network technology (solutions built on the principle of organization and functioning of biological neural networks - nerve cells of a living organism), which allows you to recognize a set of individual features of the human face. Experts recognized this solution as the most accurate for databases with a volume of a million or more photos - recognition accuracy was 73.3 percent.

Artem Kukharenko, founder of N-Tech.Lab, said:

- At the moment, we plan to release a number of mass products based on the technology developed by us, and we are also considering the possibility of attracting investments for the further development of the company. Facial recognition technology can be used by law enforcement officials within the city's video recording system to identify potential criminal suspects or look for those who are already wanted. In addition, customs workers may need such a system to identify persons who, for one reason or another, are prohibited from entering the country, and at mass sports and cultural events, face recognition technologies will be able to automatically verify fans, monitor the situation in the stands and adjacent territory in real time. Now these technologies are already being successfully used in business intelligence systems, where they help prevent bank fraud. Neural networks "shot" recently and today allow solving problems in front of which previous technologies passed. In the future, their usefulness and scope will increase significantly.

According to him, one of the planned commercial projects of the company may be a dating service that helps in finding people with a certain type of appearance.

The MegaFace Benchmark international competition launched in the fall of 2015. Its organizer is the University of Washington. More than 100 teams from around the world participated in the competition, including developers of Peking University and a number of other leading world educational institutions. The sponsors were Samsung and Google.

Notes