Estonian fintech Mifundo revolutionising the financial industry in Europe had landed €10 million in funding. It will fund the creation of the cross-border data platform for portable credit profiles across the European Union.
Investment details
This includes a previously unannounced €1.2 million pre-seed led by Tera Ventures with participation of existing investor Opus11 VC and prominent angel investors, including Mihkel Karu (ex-Skype) and Sergei Anikin (ex-Pipedrive).
Mifundo has also been awarded €2.5 million in grant funding alongside a decision for €6.3 million in matched funding approved by European Innovation Council (EIC) Accelerator program from the European Investment Bank (EIB). With this round, Mifundo becomes the first fintech company in Europe to receive such funding.
“While open banking has transformed payments, FX, and investment services, credit remains stuck in outdated, fragmented systems. Even major multinational banks struggle with this. Mifundo’s creation of universal cross-border credit rails aims to break through these limitations, bringing long-overdue innovation and better access to credit across the EU” added Stanislav Ivanov, Founding Partner at Tera Ventures.
Cross-border data platform
Founded by former Bigbank Group CEO Kaido Saar in 2018, Mifundo has built the first AI-powered cross-border data platform for portable credit profiles.
The company’s goal is to establish a truly unified credit market in the EU, reducing financial inequality and providing better access to financial services for all European citizens.
The cross-border finance platform connects people with banks regardless of their location. It offers borderless banking options wherein banks can no longer choose its customers but customers can choose banks from different options and countries. Its easy-to-use solution for cross-border lending makes customers’ lives easier and widen their options.
“Mifundo’s cross-border data technology allows banks to serve clients from other European countries. As a result, European banks can enjoy improved data quality, more accurate credit assessments, and greater business opportunities by providing financial services to citizens relocating to other European countries. Banks can reduce credit risk of their foreign customers by up to 7 times and increase business volume by 15%,” said Kaido Saar, CEO of Mifundo.
Revolutionises fintech industry in Europe
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.
