Bokio, a Gothenburg, Sweden fintech company providing an AI-driven accounting software platform for SMEs and self-employed, raised €7.4m in funding.
The company also announced it has merged with Stockholm-based competitor Red Flag.
Backers, in the round, which brought total funding to date to €14m, included existing investors Creandum, European financial group Svea Ekonomi, Carl Manneh, co-founder of Mojang (creator of Minecraft), Red Flag’s existing investors – technology entrepreneur Anders Ström, angel investor Staffan Persson and asset management firm Öhman Group – and Red Flag co-founders Mattias Söderhielm and Mikael Pawlo.
The company intends to use the funds for further product development and expansion.
Now operating together under the Bokio banner, the two companies will merge all assets, people and customer contracts. With a combined user base of over 80,000 customers across Sweden and the UK, Bokio is now one of Europe’s leading companies for automated accounting and business administration. In addition to Bokio’s existing, free accounting software, users will gain access to an enhanced, fully-automated service for business administration, which will go under the Red Flag name.
Bokio co-founder Viktor Stensson remains in his role as CEO of the company. Red Flag’s CEO and co-founder Mikael Pawlo will be responsible for international growth and expansion. With the merger, Bokio now has 80 employees and offices in Gothenburg and Stockholm, where the former Red Flag HQ is located. With Red Flag operating as a payments institute, the merger requires approval by Finansinspektionen (the Swedish Financial Supervisory Authority).