Stockholm-based Bits, a compliance and onboarding infrastructure provider for regulated FinTechs and banks, has secured €12 million in Series A funding to expand automation across financial crime, onboarding and regulatory workflows.
The round was led by Alstin Capital, with participation from Cherry Ventures, Unusual Ventures and Alliance Ventures. The raise also included strategic backing from Haval van Drumpt, CEO of Tre Sweden. The funding builds on a €4 million seed round completed in 2023 and brings total capital raised by the company to €16 million.
Turning compliance into a growth enabler
Founded in 2022, Bits develops a unified compliance platform that helps regulated financial institutions onboard customers, assess risk and remain compliant across European markets. The company’s approach replaces fragmented, market-by-market compliance stacks with a single system covering onboarding, fraud prevention, AML and continuous monitoring.
According to Bits, customers can reduce manual case handling by between 50 and 70 percent, while accelerating onboarding and approval times by up to six times. Processes that previously took weeks or months can now be completed in days, and in some cases hours, while compliance teams focus their attention on higher-risk cases.
“Our customers need to scale, convert and remain compliant at the same time,” said Jonatan Klintberg, CEO and co-founder of Bits. “By unifying onboarding, fraud and AML workflows in one platform, compliance becomes a driver of growth rather than a bottleneck for expansion.”
Built by operators from Europe’s FinTech ecosystem
Bits was founded by a team of former operators from Klarna, AWS and Tink, bringing hands-on experience of scaling regulated financial products across Europe. CEO and co-founder Jonatan Klintberg leads the company, alongside a leadership team with deep expertise in cloud infrastructure, payments and financial services regulation.
This operational background has shaped the company’s focus on automation, auditability and pan-European coverage, addressing the practical challenges compliance teams face as they expand into new jurisdictions.
A single platform for pan-European compliance
The Bits platform supports KYC and KYB workflows in more than 100 jurisdictions and integrates with a broad ecosystem of data sources and electronic identity providers. Through a single integration, customers gain access to company registries, beneficial ownership data, PEP and sanctions lists and fraud signals across Europe.
The company’s customers include Qliro, Alisa Bank and Walley, which use the platform to streamline onboarding and reduce operational complexity while meeting increasingly strict regulatory requirements.
As the EU moves towards a single AML rulebook and the introduction of AMLA, expectations around compliance technology are rising. Many financial institutions are being forced to reassess whether their existing tools can meet new regulatory standards without slowing growth.
Strong investor interest in compliance automation
Bits’ Series A comes amid sustained investment in European compliance and financial crime infrastructure. Investors are increasingly backing platforms that move beyond point solutions and address the entire compliance lifecycle through automation.
“Compliance has become a platform challenge rather than something that can be solved with isolated tools,” said Alexander Meyer-Scharenberg, Principal at Alstin Capital. “Bits unifies AML and fraud workflows in one system with consistent decisioning and auditability, and the product reflects a deep understanding of real-world compliance operations.”
Scaling across Europe
The new funding will be used to expand product capabilities, increase automation across fraud and financial crime detection workflows and add further European data coverage. Bits also plans to scale its go-to-market team as it targets continued expansion across the DACH region and the UK.
As banks and FinTech companies face rising fraud risks, tighter regulation and pressure to deliver fast digital onboarding, Bits is positioning itself as a core compliance infrastructure layer for financial institutions operating across Europe.
Also Read: UK Launches £20 Million Defence Innovation Fund to Back Next Generation of Tech Startups