Mifundo, an Estonian FinTech startup, has landed €1.2m in a pre-seed funding round led by Opus11 VC.
Angel investors who took part in the round include Jüri Laur from LHV Bank and Kaido Kepp from Iizi Kindlustusmaakler.
According to Finextra, the project has also been supported by the European Union through the European Regional Development Fund and EAS.
Mifundo is a pan-European cross-border platform that connects people with banks regardless of their location. The firm said its AI will find the credit offers based on client data and will find the best loan terms from banks over the Europe.
The company claims it is creating an AI-based platform that treats the European Union as a single credit market.
Mifundo CEO and founder Kaido Saar said, “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 included investment, the company will continue to fulfill its vision. We can develop the product and bring it to the market.
Mifundo’s service solves several problems at once. Firstly, people will have the opportunity to communicate with banks across Europe, regardless of where they geographically live. Also the large difference in interest rates between countries has created a very unequal situation for people, depending on their nationality.
“For example, if the average consumer loan interest rate in Estonia today is 12%, in Finland it is twice as low and remains on average at 6%, while in Sweden it is less than 4% and in Luxembourg even 2%. Secondly, banks will have the opportunity to enter new markets and test the business model without making large investments.”
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