Mifundo announces €10M funding decision for Cross-Border Credit Data platform
Our member, Mifundo, has been awarded €10m to fund the creation of the cross-border data platform!
Estonian fintech Mifundo has been awarded €10m to fund the creation of the cross-border data platform for portable credit profiles across the European Union. A combination of their previously unannounced €1.2m pre-seed round from local VCs and angels, Mifundo has also been awarded €2.5M grant funding, alongside a decision for €6,3M in matched funding approved by the prestigious European Innovation Council (EIC) Accelerator program from the European Investment Bank (EIB), making it the first fintech company in Europe to receive such funding.
Mifundo’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.
In total, EIC will invest €411m into companies that develop technology of strategic importance to Europe and have disruptive potential on a global scale. Mifundo, along with 67 other companies were selected in a highly competitive process from nearly 1,000 applicants.
Mifundo’s €1.2m pre-seed round was 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'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.
“While open banking has transformed payments, FX, and investment services, credit remains stuck in outdated, fragmented systems.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.
Mifundo's background
Founded by former Bigbank Group CEO Kaido Saar, Mifundo has built the first cross-border data platform for portable credit profiles. The company's goal is to create a truly unified credit market, starting within EU, reducing financial inequality and providing better access to financial services for all European citizens. Winner of - LendTech of the Year* and Fintech Startup of the Year* and a graduate of the Mastercard Lighthouse program as one of the highest potential fintech companies in Northern Europe.
*Europe Fintech Award 2023, Banking Technology Award 2023
About the EIC Accelerator
The EIC Accelerator is part of the European Innovation Council (EIC), established by the European Commission under the EU Horizon Europe program. It supports individual SMEs, especially startups and spin-off companies, to develop and scale up groundbreaking innovations. The EIC Accelerator provides substantial financial support with grants of up to €2.5M combined with equity investments through the EIC Fund, ranging from €0.5M to €15M.
To secure the full matched investment from EIC, an equivalent amount from private investors must be received to co-invest (split across up to two rounds). This prerequisite ensures full EIC support and supports the completion of subsequent funding rounds.
About Tera Ventures
Tera Ventures is an Estonian venture capital firm focused on early-stage, globally-minded digital startups. With a strong presence in Estonia and investments across Northern and Eastern Europe, backs world-class founders solving big problems, with a preference for fintech, automation, and AI/ML. They are founder-friendly, providing hands-on support and facilitating entry into global markets like the US, UK, and Japan. Their portfolio benefits from access to a global advisory network and partnerships with top-tier VCs.
Find more information here: https://eic.ec.europa.eu/news/eic-accelerator-68-deep-tech-start-ups-latest-funding-round-2024-07-15_en
For additional information, please contact:
Kaido Saar
CEO & Co-Founder of Mifundo