Bits Technology raises €4M to revolutionise how fintech products are developed

Stockholm-based startup Bits Technology has secured €4 million in seed funding to reshape the developmental stage of fintech products.

US-based venture capitalist Unusual Ventures led the funding round with additional support from asset management firm Fin Capital. Both investors have served numerous startups, with Unusual Ventures focusing on seed-stage infrastructure firms and Fin Capital specialising in B2B fintech startups.

Bits’ existing investors, like Greens Ventures and Cherry Ventures, also joined the fundraising. This funding round complements a €1 million pre-seed funding Bits raised in September last year.

According to Bits, the funds will help the firm speed up its product development and market launch plan. The fintech startup plans to offer its products, including its no-code solution and API package, to the wider European market this year.

Bits aims to achieve democratisation in fintech

Since its establishment in 2022, the company has focused on democratising fintech services for all users. Bits said finance companies encountered various administrative challenges, particularly in the areas of customer identity and anti-money laundering (AML).

Bits argues that the market segment has a big room for growth due to the constantly evolving financial regulatory landscape and digital technology industry. The firm said Europe’s compliance and risk management digital solution market would grow to be worth around $70 billion (approximately €63.72 billion) by 2027 as businesses require more sophisticated monitoring and identity verification solutions.

The Stockholm startup helps solve these challenges by orchestrating “multiple infrastructure and data sources, resulting in flexibility and dynamic user experiences.” Bits customers can build dynamic client onboarding flows and expand to other markets without worrying about compliance with regional laws or incorporating different service providers.

“By utilizing Bits, customers can conveniently access all the necessary data for effectively managing and taking action on their customer and user onboarding,” Jonatan Klintberg, co-founder and CEO of Bits, said.

The platform also enables businesses, regardless of size, to create a single view over important user information, irrespective of the service providers involved and the number of data sources. It allows Bits customers to evaluate risk, prevent fraud and maintain compliance with financial regulations more conveniently.