Swedish Fintech firm Bokio, which provides an artificial intelligence (AI)-enhanced accounting tool for small businesses and freelance workers, has acquired €7.4 million in capital from existing investors.
Bokio has also reportedly merged its business with Stockholm-headquartered competitor Red Flag. Bokio’s latest investment round received contributions from Creandum, Svea Ekonomi, and several angel investors, including Mattias Söderhielm and Mikael Pawlo (both founders of Red Flag).
Following the merger, both firms will operate under the Bokio brand. The assets of both companies will also be merged. Employees from both businesses will continue to work in their existing roles. Customers’ contracts entered by the companies will also continue under the newly merged entity.
Bokio now has a team of 80 professionals and claims 80,000 customers based in Sweden and the United Kingdom.
Viktor Stensson, co-founder and CEO at Bokio, stated:
“Red Flag’s portfolio of business administration products completes our current offering.”
Red Flag has been focused on developing its digital accounting software for several years. The company has acquired substantial venture capital investments from various unnamed investors.
Mikael Pawlo, CEO and co-founder at Red Flag, will be joining the Bokio team. He will be responsible for leading the merged company’s global growth and expansion efforts.
“Viktor and I have been in close discussion about collaborating and supporting each other for several years, and based on both companies’ progression to date, now is the right time for our teams to come together as one.”
Red Flag operates as a payments service provider, which means that the planned merger requires approval by Sweden’s financial regulator, the Financial Supervisory Authority (the Finansinspektionen).
Based in Gothenburg, Bokio has secured a total of €14 million in capital (to date), which includes the Fintech firm’s €4 million investment round in late 2019.