Innovative Estonian fintech company Mifundo has secured €2.5M grant funding plus investment from the prestigious 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.
The EIC's funding consists of a grant of 2.5 million euros and also an equity investment. In total, the EIC will invest 411 million euros 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.
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.