Estonian fintech startup Mifundo has secured €2.5 million in grant funding alongside investment from European Innovation Council (EIC) Accelerator program that recently invested in Onego Bio and Dronamics. This makes it the first fintech company to receive full funding from this initiative.
First investment into a fintech
It is the most competitive program in Europe, where nearly 1,000 candidates applied. Typically, the EIC invests in the deep tech sectors such as quantum computing, space technology, biotech and medicine. However, for the first time in the history, a fintech company has been chosen for the full scale investment.
With the new funding, Mifundo plans to integrate additional countries into its platform, further develop the pan-European data model and expand data service coverage within the EU.
The team behind Mifundo?
Founded in 2018 by former Bigbank Group CEO Kaido Saar, Mifundo is building the first AI-based cross-border data platform to enable the portability of credit profiles throughout the European Union.
The company’s goal is to create a truly unified credit market in the EU, reducing financial inequality and providing better access to financial services for all European citizens.
How does it work?
Mifundo is dedicated to revolutionising the financial industry in Europe with its platform. Banks and other creditors will get the capability to assess the credit risk of their foreign customers properly. The technology, combining cross-border data from credit bureaus, open banking and other sources, helps to reduce the credit risk of foreigners up to 7 times and to increase bank’s business volumes by 15% while offering seamless UX both for banks and consumers.
Kaido Saar, CEO and Founder of Mifundo, stated, “This substantial funding is a powerful endorsement of our mission to transform the European financial sector. By enabling the free movement and utilisation of credit data across Europe, we are making it possible for consumers to access banking products in different countries seamlessly. We are proud to be among the select few from nearly a thousand innovative companies chosen for the highly competitive EIC Accelerator program. Mifundo will leverage this funding to accelerate our growth and innovation, playing a crucial role in reshaping the future of cross-border finance in Europe.”
What do we think about Mifundo?
The AI-based platform is set to revolutionise the European financial landscape by enabling the seamless portability of credit profiles across the EU. This innovation reduces financial inequality and enhances access to financial services for all EU citizens.
By significantly lowering credit risk for banks and improving user experience, Mifundo is poised to unify the EU credit market and drive substantial growth in cross-border banking.
