VILNIUS-BASED STARTUP Okredo RAISES €650K FOR ITS OPEN DATA PLATFORM
There is a school of thought that data – and more significantly access to it is one of the driving force that is keeping the society and economy of Europe. As a society believed to be data-driven, the need to leverage this by businesses across verticals has become necessary, hence, startup Okredo has taken the step to help small businesses gain access to enhanced business opportunities.
Poised with this mission to help companies access data with improved insights, the subject startup has just raised €650k, despite a slowdown in VC investment notably in the subject geography.
The latest funding round for Okredo was led by the Lithuanian Business Angels Fund, Presto Ventures including Lighthouse Ventures. However, the fresh fund is also believed to be a continuation of its 2021 round – in which the startup secured €1 million. Going forward, the fresh fund will be used for its expansion in the UK and other markets coupled with the development of an Open Banking solution.
Founded in 2015, Okredo has rapidly become a trusted SaaS platform that is enabling SMEs to access the credibility, stability, and sales potential of prospective and ongoing business partners and clients.
As a startup tackling a far-reaching issue that meant actionable data, notably with regards to business central. As this is an issue that SMEs are increasingly faced with as most countries’ data is fragmented across several sources that require a number of integrations, take a longer time to acquire, and is proven to be rather challenging to comprehend.
The impact of this is that the subject data could be utilized for both sales and credit risk management- imperative to business processes. In view of this, it’s evident that there is a need in the market for a product that allows data to be easily understood and aid businesses in addressing these concerns, hence startup Okredo intends to offer such practical solutions.
Based on data growing industry, it’s been noted that the rise of a data-driven world has been gaining momentum by the likes of the 2019 EU Directive on Open Data and the Re-use of Public Sector Information, which urges EU countries to ensure that publicly financed and public sector data is accessible as possible for the purpose of information re-use, and, in turn, lead to financial gain.
The impact of data market development is felt more by the SMEs, which are more vulnerable to greater risks owing to the fact that they have insufficient knowledge and resources needed to collect and interpret data, but there seem to be no funds for expensive credit risk management solutions like credit insurance or credit bureaus.
In view of this development, ‘Gerda Jurkoniené’, co-founder and CEO of Okredo, said: “The decision of some venture capital funds to continue investments is a sign of the company’s efficiency and ability to deliver results. The general proliferation of the data market – with its ability to increase the overall speed of business – has also helped attract further investments. The data industry, which has even been dubbed by some as the ‘new oil’, is an attractive field for investors”.
Gerda also added: “Our platform offers a variety of tools that make it simpler to assess businesses’ risks and sales potential. These tools are highly valuable due to the current economic instability, brittle logistics chains, the ongoing geopolitical tensions, and the reorientation of international commerce. However, European companies currently lack a widely-accessible open data platform to analyze such factors, which is exactly what we want to change. To help tackle this situation, we have also created a number of API solutions for our partners who create ERP, CRM, and accounting systems, adding the value of current data to their services”.
The startup which has major significant success across the Baltics, having amassed over 17,000 users and more than 3,000 corporate clients is currently poised to expand across Europe. Given expansion into the UK and other markets, Okredo is also developing open banking solutions for its users, notably in the areas of risk management.
In line with the company’s mission, the solution, with Okredo’s consent is believed to constitute cash flow and other financial parameters and will enable the sharing of its financial performance with relevant stakeholders throughout the year. Noting up-to-date data would offer a more thorough basis for a business assessment that will allow to improve the structure of internal operations and accelerate business processes.
‘Roman Novàcek’, partner at Presto Ventures, commented: “Having invested in Okredo a few months ago, we had the opportunity to observe the company’s operations from the inside, to get to know the processes and the team. Our investment has exceeded our expectations and we still see potential in further developing their product and adding new features to broaden the market potential. We want to play a more active role in Okredo’s expansion to other countries. We have no doubt that a single European platform for corporate data can make doing business across Europe more secure, especially for small businesses that were traditionally priced out of the market. They will definitely appreciate it in these uncertain economic conditions”.
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