Estonian fintech company Mifundo has secured €2.5 million in grant funding plus investment from the European Innovation Council (EIC) accelerator program, making it the first fintech company ever to receive full funding from this initiative.
Mifundo is dedicated to revolutionizing the financial industry in Europe by developing a groundbreaking AI-based data platform that enables the transfer of credit profiles across borders. 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. Mifundo´s mission is to create a unified credit market within the European Union, improving access to financial services across the continent.
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 utilization 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.”
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. “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,” added Saar.
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. The company has received prestigious awards in the sector, including the Europe Fintech Award 2023 – LendTech of the Year, and Banking Technology Award 2023 – Fintech Startup of the Year. In the spring of 2023, Mastercard Lighthouse recognized Mifundo as one of the high-potential fintech companies in Northern Europe.
The EIC’s funding consists of a grant of €2.5 million and also an equity investment. In total, the EIC will invest €411 million in 68 deep tech companies that develop technology of strategic importance to Europe and have disruptive potential on a global scale.
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.
Read the orginal article: https://www.eu-startups.com/2024/07/tallinn-based-fintech-mifundo-secures-e2-5-million-to-unlock-cross-border-lending/
