In March 2020, Silicon Canals revealed during an exclusive interview with Viktor Stensson, CEO & co-founder of Bokio, that the AI-based bookkeeping tool is looking to raise funding this year. Now the news is just in that the Swedish startup has announced a merger with its Stockholm-based competitor, Red Flag and has also got a capital injection of €7.4 million. The investment was led by existing investors including Creandum (early backers of Spotify) and European financial group, Svea Ekonomi.
Carl Manneh, co-founder of Mojang (creator of Minecraft), 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 also participated in the round.
The new investment will be used for further product development and expansion and brings total funding to date to €14 million.
Now operating together under the Bokio banner, the two companies will merge all assets, people and customer contracts. With a combined user base of over 80,000 customers across Sweden and the UK, Bokio is now one of Europe’s leading companies for automated accounting and business administration.
In addition to Bokio’s existing, free accounting software, users will gain access to an enhanced, fully-automated service for business administration, which will go under the Red Flag name.
Bokio co-founder Viktor Stensson remains in his role as CEO of the company. Red Flag’s CEO and co-founder Mikael Pawlo will be responsible for international growth and expansion.
Viktor Stensson CEO and co-founder of Bokio comments:
“Red Flag’s portfolio of business administration products completes our current offering to make it easier and more enjoyable for all company owners and self-employed to run their businesses. Now combining our services into one streamlined technology platform, and with Red Flag’s skilled and entrepreneurial-minded team joining Bokio, we know that we can make a real impact. I look forward to further developing the company together.”
“It is important to dare to do business also in turbulent times. I am very pleased to have the continued support of existing investors and delighted to see new investors such as Carl Manneh on board to join us on our journey. Mikael Pawlo and existing Red Flag investors choosing to back us as part of the merger is evident of their dedication to succeed in our joined mission.”
Mikael Pawlo co-founder of Red Flag comments:
“It feels very exciting to be part of this next phase towards creating Europe’s leading challenger fintech for automated accounting and business administration services. Bokio is the perfect partner for us to take our work to the next level and create something truly big and global. 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. The new Bokio will be offering the next-generation of automated and AI-driven services for business owners across the globe, to help them run their companies in a smooth and successful manner.”
Bokio investor and Mojang co-founder, Carl Manneh, comments:
“I rarely invest in tech startups, but I had to make an exception on this occasion. This was a golden opportunity to support a team of entrepreneurs who are building something that can improve society, and help more people start and run their own businesses. I look forward to seeing where the journey takes them next.”
With the merger, Bokio, the Gothenburg-born fintech behind an AI-driven accounting software for SMEs and self-employed 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 institute, the merger requires approval by Finansinspektionen (the Swedish Financial Supervisory Authority).
Founded in 2015 by CEO Viktor Stensson and CTO Mikael Eliasson, Bokio also recently expanded to the UK, where it is now a member of the Swedish Chamber of Commerce.
Main image credits: Bokio
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