Accountancy platform Bokio has raised EUR7.4 million in equity finance and merged with Stockholm-based competitor, Red Flag.
Funding for the Gothenburg-born fintech, which provides AI-driven accounting software for SMEs and self-employed, came from existing investors including Creandum and European financial group, Svea Ekonomi. Also participating in the round is Carl Manneh, co-founder of Mojan, 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 new investment brings total funding to date to EUR14 million.
Now operating together under the Bokio banner, the two companies will merge all assets, people and customer contracts to manage a combined user base of over 80,000 customers across Sweden and the UK.
In addition to Bokio’s existing, free accounting software, users will gain access to a fully-automated service for business administration, which will go under the Red Flag name.
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 institution, the merger requires approval by the Swedish Financial Supervisory Authority.