Swedish startup Bits raises €12 million to deepen automation across FinTech compliance workflows

Swedish startup Bits has secured €12 million in Series A funding to enhance automation in financial crime compliance workflows and expand its regulatory data coverage. This significant investment underscores a growing trend of increased investor confidence in European RegTech solutions, particularly those focused on critical compliance and risk management for financial institutions. The company aims to transform compliance from a business impediment into a catalyst for growth within the FinTech sector. The new capital will primarily fuel product development, with a focus on deepening automation for fraud detection and financial crime prevention, alongside integrating a wider array of European data sources. Bits' platform aims to streamline Know Your Customer (KYC) and Know Your Business (KYB) processes across over 100 jurisdictions, consolidating fragmented compliance operations into a unified, pan-European solution. This approach promises to reduce manual case handling significantly and accelerate customer onboarding times. This funding round highlights the increasing demand for sophisticated, integrated compliance infrastructure as FinTech companies and banks navigate escalating fraud risks and evolving regulatory landscapes, such as the EU's move towards a single AML rulebook. With this investment, Bits is well-positioned to expand its market presence, targeting growth in regions like DACH and the UK, thereby contributing to Europe's digital sovereignty in financial services technology.