Bokio, the Swedish AI-based accounting tool for small businesses and freelancers, has raised €7.4 million in funding from existing investors and merged with Stockholm-based competitor Red Flag. The round included investments from Creandum, Svea Ekonomi, and some business angels, including Red Flag founders Mattias Söderhielm and Mikael Pawlo.
Now operating together under the Bokio brand, the two companies will merge all assets, people and customer contracts, creating a team of 80 and a combined user base of 80,000 across Sweden and the UK.
“Red Flag’s portfolio of business administration products completes our current offering,” says Viktor Stensson, co-founder of Bokio who will stay on as CEO. Red Flag has been developing its digital accountancy app for the last few years, securing venture capital from undisclosed investors.
Red Flag’s CEO and co-founder Mikael Pawlo will join Bokio to lead international growth and expansion. “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,” he said.
Since Red Flag operates as a payments institute, the merger requires approval by Finansinspektionen, the Swedish Financial Supervisory Authority.
Headquartered in Gothenburg, Bokio has raised €14 million to date, including a €4 million round just five months ago.
Photo: Bokio CEO and co-founder, Viktor Stensson