Mifundo, a fintech startup founded by the former CEO of Estonian digital bank Bigbank, has successfully raised €1.2 million in pre-seed funding to develop a platform that allows individuals to apply for loans from banks across the European Union.
Collaborating with researchers from the University of Tartu, Mifundo is creating an AI-based platform that treats the EU as a unified credit market. Founder and CEO Kaido Saar stated, “Our vision is to turn the entire European Union into one credit market. We become a bridge between people and banks. With the support of the investment we received, the company will continue to fulfill its vision and bring our product to the market.”
The pre-seed funding round was led by Opus11 VC, whose core team comprises members from Trigon Capital and the founders of Fractory. Angel investors include Jüri Laur from LHV Bank and Kaido Kepp from Iizi Kindlustusmaakler. Additionally, the project has received support from the European Union through the European Regional Development Fund and EAS.
Saar emphasized, “Mifundo’s service addresses multiple challenges. Firstly, it allows people to connect with banks across Europe, irrespective of their geographical location. The significant differences in interest rates between countries have created an unequal situation for individuals based on their nationality. For instance, while the average consumer loan interest rate in Estonia is 12%, in Finland it is around 6%, in Sweden it is less than 4%, and in Luxembourg, even lower at 2%. Secondly, banks will be able to enter new markets and test their business models without substantial investment.”