Meet the Baltic Fintech Disruptors Taking the Market by Storm

Although the Baltic states are strategically located between East and West, Estonia, Latvia, and Lithuania often go unnoticed by fintech leaders. However, they are gradually establishing themselves as fintech powerhouses.

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Overcoming Baltic Economic Challenges

The Baltic states faced major economic challenges after regaining independence in 1991. But these challenges also presented new opportunities. The post-Soviet countries transitioned to a market economy and quickly transformed their business environments.

One of the advantages of the Baltic states was their lack of existing banking infrastructure. Unlike many Western countries that had to transition from traditional banking systems to digital platforms, the Baltic countries directly “leaped” to digital financial services.

Today, the Baltic fintech ecosystem comprises over 500 companies dealing with digital payments, cryptocurrency, insurtech, and more. Estonian Wise (formerly TransferWise), Lithuanian Vinted, and Revolut have all achieved “unicorn” valuations of over $1 billion (€0.92M).

Achievements of Each Baltic State

Each Baltic state has its unique achievements. Estonia, for instance, has the highest number of unicorns per capita in the world. Latvia has recently won a campaign against money laundering (AML), making it a wise choice for compliance expertise. Meanwhile, Lithuania has grown its number of fintech companies from a handful to over 270.

Montonio

• Founders: Henrik Rang, Karel Nappus, Karl Kristjan Kalluste, Kristofer Turmen, Markus Lember, Rasmus Isma
• Founded: 2018
• Funding: €14.5M

Founded by a team of entrepreneurs, Montonio is an all-in-one payment platform aimed at Baltic and European online merchants. It offers a variety of local payment methods, including card payments, Apple Pay, and Google Pay, all at low cost.

Montonio simplifies refund processes and shipment management for its clientele. It offers a “buy now, pay later” option, allowing customers to split purchases into multiple installments without fees or interest, while merchants receive full payment upfront.

Its dashboard allows merchants to access real-time data on payments, shipments, and refunds.

Through its platform, Montonio promises to end overcharging and eliminate payment complexities with its self-service API integration.

Xolo

• Founders: Avoid Alender, Erik Mell, Erko Hansar, Urmo Parg
• Founded: 2015
• Funding: €11M

Baltic fintech company Xolo has reduced business administration time to near zero by merging invoicing, compliance, and banking operations into a single application. Targeting entrepreneurs, it aims at 40 million professionals worldwide who run their businesses independently.

Xolo’s platform supports business creation, banking services, accounting, and other services. This makes it the fastest and easiest way to launch and manage an independent business in the Baltic states and Europe.

Based in Tallinn, Xolo’s largest user base is in Germany, Spain, France, the UK, Ukraine, and Turkey.

Its typical customers are professionals needing a robust and straightforward platform for their business operations. This includes software developers, management consultants, designers, and others.

Led by CEO Mikko Teerenhovi, Xolo now has 140,000 registrations and €7.2 million in annual recurring revenue (ARR).

Tuum

• Founders: Jan Lakspere, Ove Kreison, Rivo Uibo, Vilvé Vene
• Founded: 2019
• Funding: €45M

Formerly known as Modularbank, Tuum is a Baltic cloud-based banking platform. Founded by a team of banking and technology experts, the company offers a suite of banking services for businesses.

Tuum is designed to integrate seamlessly with existing financial infrastructures. With it, traditional banks and fintech companies can enhance and add their digital offerings. Tuum’s platform is cloud-native, meaning it can operate on all major cloud providers and private clouds.

Tuum, which raised €4 million in a late-seed funding round in December 2020, is headquartered in Tallinn, Estonia. Its CEO, Vilve Vene, employs over 60 people across several offices in Berlin and Malaga.

4finance

• Founder: Aigars Kesenfelds
• Founded: 2008
• Funding: $734.2M (€679M)

4finance is a Baltic fintech company specializing in online and mobile consumer loans. Created in 2008, the company has become the largest consumer credit group in 11 European countries.

Its loan products include single installment loans, installment loans, and credit lines. The company assesses credit risk using advanced analytics to provide tailored lending solutions.

This unique approach has led the Baltic company to grant over €8 billion in loans to a broad customer base. Leading brands like Vivus, SMSCredit, and Zaplo are part of its client portfolio.

The company’s group offices are located in Riga and London. However, it oversees operations in countries like Bulgaria, the Czech Republic, Denmark, Latvia, Lithuania, Romania, Spain, and Sweden.

4finance also serves its customers through TBI Bank, an EU-licensed banking operation offering consumer and SME loans in Bulgaria and Romania.

Kevin.

• Founders: Pavel Sokolovas, Tadas Tamosiunas
• Founded: 2018
• Funding: $79.4M (€73.4M)

Based in Vilnius, Lithuania, Kevin. is a Baltic fintech company that offers advanced account-to-account payment infrastructure. Led by entrepreneur Tadas Tamošiūnas, it has become a major player in the payments sector.

Kevin.’s technology eliminates the need for credit cards by connecting directly to users’ bank accounts. The platform supports traditional cards, link payments, point of sale (POS) systems, direct debit, and online payments.

Kevin. benefits both merchants and consumers through efficient and cost-effective transactions. Businesses of all sizes can also use Kevin.’s customizable and scalable payment solution.

The Baltic company raised $65 million (€60.11M) in Series A funding from investors like Accel and Eurazeo. This financial support has enabled Kevin. to hire over 300 employees across Europe. It positions itself optimistically on a trajectory to achieve unicorn status.

Mintos

• Founders: Martin Sulte, Martins Valters
• Founded: 2015
• Funding: €14.2M

Mintos is a global marketplace for investing in loans based in Riga, Latvia. The Baltic company was founded by entrepreneurs Martins Sulte and Martins Valters in 2015.

Mintos has created a platform that connects retail investors with lending opportunities. The company serves over 500,000 investors within the European Union and manages assets worth over €600M.

Regulated by the Markets in Financial Instruments Directive (MiFID) in the European Union, Mintos is a unique way to create wealth. It implements environmental, social, and governance (ESG) criteria in its practices. The company also maintains high standards in anti-corruption and anti-bribery measures.

Mintos encourages existing customers and the general public to become shareholders. Ultimately, it aims to become the top choice for anyone looking to build long-term wealth.

Profitus

• Founder: Viktorija Vanagė
• Founded: 2017
• Funding: Not disclosed

Profitus is a Baltic real estate investment platform based in Vilnius, Lithuania, with a new approach to real estate financing. Launched in mid-2018, it aims to democratize real estate investments by allowing users to start investing with just €50.

The Baltic platform connects investors with real estate developers seeking funding. Investors can browse real estate projects on the platform and choose those that match their goals. The investment is secured by the project owner’s pledged assets, further safeguarding the transaction.

In 2019, Profitus participated in a trial within the Realbox Proptech sandbox, based in Vilnius. This project allowed it to expand its network of investors and clients. Profitus also raised €300,000 in seed funding to further develop its platform.

Evarvest

• Founder: Stephanie Brennan
• Founded: 2018
• Funding: €239.5K

Based in Vilnius, Lithuania, Evarvest is a Baltic fintech startup seeking to change the way individuals invest in the stock market. Founded in early 2018, Evarvest makes global stock exchanges accessible by offering a simple and commission-free investment platform.

The Baltic company helps users invest in the brands they know, love, and trust without the complexities associated with stock trading. Even before its official launch, Evarvest already has over 28,000 users on its waitlist.

Today, it integrates more than 30 global stock exchanges and offers users access to over 9,000 stocks. Currently, Evarvest focuses on obtaining its financial brokerage license and finalizing its investment platform.

Although relatively young, Evarvest has gained recognition within the fintech sector. The Baltic startup was recognized by the Barclays Rise Vilnius 2018 Fintech Week Pitch Contest and FintechInn Conference 2018 Pitch Battle.

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(Featured image by Markus Winkler via Unsplash)

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