Although strategically located between East and West, Estonia, Latvia and Lithuania often go unnoticed by business leaders. Yet they are gradually establishing themselves as fintech powerhouses.
The Balkan states faced major economic challenges after regaining their independence in 1991. But these challenges also presented new opportunities. The post-Soviet countries made the transition to market economies and rapidly transformed their business environments.
One of the advantages of the Baltic States was the absence of traditional banking infrastructure. Unlike many Western countries that had to move from traditional banking systems to digital platforms, the Baltic States have made a “leapfrog” towards digital financial services.
Today, The Baltic fintech ecosystem consists of over 500 companies covering digital payments, cryptocurrency, insurtech and more. Wise (formerly TransferWise) in Estonia, Vinted in Lithuania and Revolut have all reached “Unicorn” valuations exceed $1 billion (€0.92 million).
Each state has its success stories. Estonia, for example, has the most unicorns per capita in the world. Latvia just won an anti-money laundering (AML) fight, making it a good choice for compliance expertise. Meanwhile, Lithuania has has increased its number of fintech companies from a handful to more than 270.
Every state has a unique approach to fintech. Let’s meet some of the players in this sector.
Montonio
Founder(s): Henrik Rank, Karel Nappus, Karl Kristjan Kalluste, Kristofer Turmen, Markus Lember, Rasmus Oisma
Founded: 2018
Funding: €14.5 million
Hiring: Yes, check out job openings here
Founded by a team of entrepreneurs, Montonio is an all-in-one payment platform for European e-commerce merchants. It offers a variety of local payment methods, including card payments, Apple Pay and Google Pay, all at a low cost.
Montonio simplifies refund processes and shipping management for its customers. It offers a “buy now, pay later” option, which allows customers to split their purchases into several installments without fees or interest. Merchants, meanwhile, will receive full payment up front.
Its dashboard allows merchants to access real-time data on payments, shipping and refunds.
Montonio promises to end overcharging with its platform. It also aims to eliminate payment complexities with its self-service API integration.
Xolo
Founder(s): Mr. Alender, Erik Mell, Erko Hansar, Urmo Parg
Founded: 2015
Funding: €11 million
Hiring: Yes, check out job openings here
Fintech Company Xolo has reduced business management time to near zero by merging invoicing, compliance and banking into a single application. Aimed at entrepreneurs, it targets 40 million professionals worldwide who run their businesses independently.
The Xolo platform allows you to create companies, manage banking, accounting services and other services, making it the fastest and easiest way to start and run an independent business in Europe.
Although based in Tallinn, Xolo’s largest user base is in Germany, Spain, France, the United Kingdom, Ukraine and Turkey.
Its typical customers are professionals who need a simple and robust platform for their business operations. These include software developers, management consultants, designers and others.
Led by CEO Mikko Teerenhovi, Xolo now has 140,000 registrations and €7.2 million in annual revenue (ARR).
You
Founder(s): Jan Lakspere, About Kreison, Rivo Uibo, Vilve Vene
Founded: 2019
Financing: €45 million
Hiring: Yes, check out job openings here
Formerly known as Modularbank, You is a cloud-based banking platform. Founded by a team of banking and technology experts, the company offers a range of banking services to businesses.
Tuum is designed to easily integrate with existing financial infrastructures. With it, traditional banks and fintechs can enhance and add functionality to their digital offerings. Tuum’s platform is cloud-native, meaning it can run 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. CEO Vilve Vene also employs over 60 people across offices in Berlin and Malaga.
4finance
Founder(s): Aigars Kesenfeld
Founded: 2008
Funding: $734.2 million (€679 million)
Hiring: Yes, check out job openings here
4finance is a fintech company specializing in online and mobile consumer credit. Founded in 2008, the company has grown to become the largest consumer credit group in 11 European countries.
Its lending products include single-payment loans, installment loans and lines of credit. The company assesses credit risk using advanced analytics to provide specific lending solutions.
This unique approach has enabled the company to issue over €8 billion in loans to a broad customer base. Leading brands such as Vivus, SMSCredit and Zaplo are among its client portfolio.
The group’s offices are located in Riga and London. However, the company oversees operations in countries such as Bulgaria, the Czech Republic, Denmark, Latvia, Lithuania, Romania, Spain and Sweden.
4finance also offers its services to its clients through TBI Bank, an EU-licensed bank that offers loans to consumers and SMEs in Bulgaria and Romania.
Kevin.
Founder(s): Pavel Sokolova, Tadas Tamosiunas
Founded: 2018
Funding: $79.4 million (€73.4 million)
Hiring: Yes, check out job openings here
Based in Vilnius, Lithuania, kAndwine. is a fintech company that offers advanced account-to-account payment infrastructure. Led by entrepreneur Tadas Tamošiūnas, it has become a major player in the payments industry.
kevin.’s technology eliminates the need for credit cards by connecting directly to users’ bank accounts. The platform supports traditional cards, link payment, point-of-sale (POS) systems, direct debit, and online payments.
kevin. provides efficient and cost-effective payment solutions to both merchants and consumers. Businesses of all sizes can also use kevin.’s customizable and scalable payment solution.
The company has raised $65 million (€60.11 million) in Series A funding from investors including Accel and Eurazeo. This financial support has enabled kevin. to hire over 300 employees in Europe. The company is optimistic that it is on a trajectory towards unicorn status.
Mintos
Founder(s): Martin Sulte, Martin Valters
Founded: 2015
Funding: €14.2 million
Hiring: Yes, check out job openings here
Mintos is a global investment loan marketplace based in Riga, Latvia. The 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 across the European Union. It also manages assets worth over €600 million.
Regulated by the European Union’s Markets in Financial Instruments Directive (MiFID), 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 its existing customers and the general public to become shareholders. Ultimately, it aims to become the first choice for anyone looking to build long-term wealth.
Profit
Founder(s): Victoria Vanage
Founded: 2017
Funding: Undisclosed
Hiring: Yes, check out job openings here
Profit is a real estate investment platform based in Vilnius, Lithuania, that offers 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 as little as €50.
The platform connects investors and real estate developers seeking financing. Investors can browse real estate projects on the platform and choose the ones that match their goals. The investment is secured by the pledged assets of the project owner, which further secures the transaction.
In 2019, Profitus participated in a trial within the Vilnius-based Realbox Proptech sandbox. The project allowed it to expand its network of investors and customers. Profitus also raised €300,000 in seed funding to further develop its platform.
Evarvest
Founder(s): Stephanie Brennan
Founded: 2018
Funding: €239.5K
Hiring: Yes, check out job openings here
Based in Vilnius, Lithuania, Evarvest is a fintech startup looking to change the way individuals invest in the stock market. Founded in early 2018, Evarvest makes global stock markets accessible by providing a simple, commission-free investment platform.
The company helps users invest in the brands they know, love, and trust without the complexities of 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 more than 9,000 securities. Currently, Evarvest is focused on obtaining its financial brokerage license and finalizing its investment platform.
Despite being a relatively young company, Evarvest has achieved accolades in the fintech sector. The startup was recognized at the Barclays Rise Vilnius Fintech Week 2018 Pitch Competition and the FintechInn 2018 Pitch Battle.