STOCKHOLM, Sweden — Swedish compliance technology startup Bits has secured €12 million in Series A funding to accelerate the automation of financial crime prevention, customer onboarding, and regulatory compliance processes for banks and FinTech companies across Europe.
The round was led by Alstin Capital, with participation from existing investors Cherry Ventures, Unusual Ventures, and Alliance Ventures. Haval van Drumpt, CEO of Tre Sweden, also joined the investment.
The funding follows Bits’ €4 million seed round raised in 2023 and reflects continued investor confidence in compliance technology as financial institutions face growing regulatory complexity, fraud risks, and pressure to deliver seamless digital customer experiences.
“Our customers need to scale, convert, and remain compliant at the same time,” said Jonatan Klintberg, CEO and co-founder of Bits. “We built Bits to make compliance a growth enabler rather than a bottleneck. By unifying onboarding, fraud, and AML workflows in a single platform, teams gain the speed, control, and confidence needed to expand across Europe.”
Founded in 2022 by former executives and operators from Klarna, AWS, and Tink, Bits develops compliance infrastructure that helps regulated businesses onboard customers, assess risk, monitor activity, and maintain compliance across multiple jurisdictions through a single platform.
The company supports Know Your Customer (KYC) and Know Your Business (KYB) processes in more than 100 jurisdictions and integrates with a broad network of electronic identity providers, company registries, sanctions databases, and fraud intelligence sources.
Bits is positioning itself as a solution to one of the biggest challenges facing European financial services firms: fragmented compliance operations. Many banks and FinTechs continue to rely on multiple local data providers, manual reviews, and market-specific compliance tools, creating operational inefficiencies and slowing expansion into new countries.
By consolidating onboarding, risk assessment, fraud prevention, and ongoing monitoring into one platform, Bits aims to simplify regulatory operations while reducing compliance costs and improving customer conversion rates.
According to the company, customers can reduce manual case handling by 50% to 70% while accelerating onboarding and approval processes by four to six times. Tasks that previously required weeks or months can reportedly be completed in days—or even hours—while compliance teams focus their attention on higher-risk cases requiring human expertise.
Existing customers include Qliro, Alisa Bank, and Walley.
The investment comes amid strong momentum for compliance and regulatory technology across Europe. As financial institutions seek greater automation, investors continue backing platforms that streamline decision-making, fraud detection, anti-money laundering (AML), and risk management workflows.
“Compliance is increasingly becoming a platform challenge rather than something that can be solved through disconnected point solutions,” said Alexander Meyer-Scharenberg, Principal at Alstin Capital. “Bits brings AML and fraud workflows together into a single system with consistent decision-making and full auditability.”
The regulatory environment is also becoming more demanding. The creation of the European Union’s Anti-Money Laundering Authority (AMLA) and the introduction of a unified AML rulebook are expected to increase compliance requirements for banks, payment providers, and FinTech firms operating across the bloc.
As institutions prepare for these changes, many are reassessing whether their existing compliance technology stacks are capable of meeting future regulatory expectations.
Bits plans to use the new capital to expand its product capabilities, introduce deeper automation across fraud detection and financial crime prevention workflows, and broaden its coverage of European data sources. The company will also invest in scaling its commercial operations as it continues expanding across the DACH region and the United Kingdom.
With compliance increasingly viewed as a strategic business function rather than a regulatory necessity, Bits is betting that automation, unified workflows, and pan-European infrastructure will become essential components of the next generation of financial services technology.
