German AI startup mika raises €6M to simplify accounting and tax for SMEs

Berlin-based vertical AI startup mika has raised €6 million in a seed round led by pan-European investor Smedvig Ventures. Basel-based family office Wecken & Cie. (Care4 AG) also participated, alongside Dennis Bemmann and Michael Brehm (studiVZ), Johannes Ditterich (limango), and Martina Pfeifer (encourageventures). Existing investors Keen Venture Partners and Dutch Founders Fund increased their stakes.

Germany has almost one million small incorporated businesses, most of them GmbHs and UGs, which are required to maintain accounts and submit tax filings. While company management can theoretically handle these processes themselves, the complexity of tax rules and the potential consequences of errors mean many small businesses rely on tax advisers or firms.

mika is targeting this process with an AI-native financial operating system for SMEs that handles ongoing bookkeeping, VAT returns, annual accounts and tax filings. At the core of the platform is an AI-native general ledger developed specifically for German accounting.

The technology reads receipts and payments and uses different AI models depending on the task, combined with accounting rules and domain knowledge developed by mika. It categorises transactions, records them and explains individual entries to users.

Trained accountants at mika review the results and intervene when cases require human involvement. Users can also query their financial information through mika or via the Model Context Protocol (MCP) using assistants such as ChatGPT or Claude. The platform can explain correspondence from tax authorities and answer questions about company accounts and finances. Individual tax advice is not currently part of the service, with mika instead working with licensed tax advisers from its network.

The moment you start a GmbH in Germany, you're told you need a tax adviser. It goes so far that some founders think it's a legal requirement. To me, it's obvious that this cannot be how it works. At mika, we use AI to tear down that barrier, so that your bank balance or the family you were born into no longer decides who gets to start a company,

said Agnieszka Walorska, founder and CEO of mika.

At the beginning of the year, around 400 GmbHs and UGs were using mika, compared with more than 750 today. The company initially focused on digital-first service businesses such as agencies and consultancies and has since expanded its customer base to SaaS, property, e-commerce, retail and skilled trades.

The company will use the new funding to support growth and further develop its platform.