Paytech start-up Mimo raises $8.5m equity investment, inks embedded funding partnership with Froda
Mimo, a payments, cash flow, and financial management start-up based between the UK and Sweden, has raised $8.5 million in fresh equity funding while also securing a new embedded funding deal with Froda.
Mimo raises $8.5m, inks $125m+ Froda partnership
The equity investment was led by early-stage VC Project A, while Northzone and Seedcamp – which previously participated in Mimo’s pre-launch £15.5 million raise in April 2024 – returned to support the round. Project A partner Malin Posern will also join Mimo’s board following the raise.
In a statement, Mimo says it will use the investment to “build out its B2B payments solution for SMBs and expand its headcount”.
This planned product development will include an invoice capture and bookkeeping automation tool called Fetch, which seeks to automate document collection and bookkeeping with AI technology, and which Mimo states is “currently being rolled out among existing customers”.
Fetch will add to a product suite currently consisting of accounts payable and accounts receivable tools as well as the company’s embedded credit line Mimo Flex, through which businesses can access funding of up to £500,000.
With fresh funding secured and new products in the pipeline, Mimo has also entered into a partnership with Stockholm-based SMB lender Froda.
The company says it will leverage Froda’s embedded funding technology to provide UK SMBs with “$125m+ in flexible working capital solutions over the coming years”, through an arrangement it states has “potential for pan-European scalability”.
