mika Secures €6M Seed Round to Automate Tax and Accounting for German SMEs

Berlin-based AI startup mika has secured €6 million in seed funding to automate accounting and tax compliance for German SMEs. By replacing traditional tax advisory dependencies with an AI-native operating system, mika addresses the high cost and complexity of the German regulatory environment, offering a scalable alternative for nearly one million incorporated small businesses.

What was announced

The €6 million seed round was led by pan-European investor Smedvig Ventures, with participation from Basel-based family office Wecken & Cie. (Care4 AG). Individual investors joining the round include Dennis Bemmann and Michael Brehm, co-founders of studiVZ, alongside limango founder Johannes Ditterich and Martina Pfeifer of encourageventures. Existing backers Keen Venture Partners and Dutch Founders Fund also increased their stakes in the company. The fresh capital is earmarked to fund growth and the further development of the platform.

The platform is designed specifically for small incorporated businesses, primarily GmbHs (private limited companies) and their smaller counterparts, UGs. These entities face strict legal requirements for bookkeeping, VAT returns, and annual tax filings—tasks typically outsourced to expensive tax firms due to the complexity of German tax codes. mika’s solution is an AI-native financial operating system built on a proprietary general ledger purpose-made for German accounting. This system reads and interprets every receipt and payment, using specialized AI models embedded with local domain knowledge to categorize and record transactions automatically.

The company has seen rapid adoption, growing from 250 customers at the start of the year to over 750 today. While initially serving digital-first agencies and consultancies, the user base has expanded into SaaS, property, e-commerce, retail, and skilled trades. This traction resulted in monthly revenue growth exceeding 20 per cent, with the company passing €1 million in annual revenue in July 2026. To ensure accuracy, mika employs in-house trained accountants who verify AI outputs and handle complex edge cases where human intervention is required.

"The moment you start a GmbH in Germany, you're told you need a tax adviser. It goes so far that some founders think it's a legal requirement. To me, it's obvious that this cannot be how it works. At mika, we use AI to tear down that barrier, so that your bank balance or the family you were born into no longer decides who gets to start a company."

Agnieszka Walorska, Founder and CEO of mika

The companies involved

mika, headquartered in Berlin and accessible via yomika.com, is led by Founder and CEO Agnieszka Walorska, alongside CFO Luke Linnekuhle and CTO Henry Müssemann. The company positions itself as a "vertical AI" specialist, moving beyond simple digitization to rebuild accounting from the ground up for the German market. By focusing on the specific regulatory hurdles of the GmbH and UG structures, mika aims to provide an AI-native alternative to the traditional tax firm model.

Smedvig Ventures, the lead investor in this round, is a pan-European venture capital firm where Freddie Kalfayan serves as a Principal. Joining them is Keen Venture Partners, an investment firm where Djoni de Vos is a Principal. Keen Venture Partners has highlighted the "service as software" model—which combines automated software with human oversight—as an emerging major category in fintech. Dutch Founders Fund, another participant, is an early-stage investment firm. The round also saw involvement from Wecken & Cie., a family office based in Basel, Switzerland. These investors are backing a model that seeks to navigate a regulatory landscape that has historically prevented international accounting software giants from gaining a significant foothold in Germany due to the intricate link between accounting entries and final tax liabilities.

What this means

The German accounting sector represents a unique challenge where the margin for error is razor-thin, as a single bookkeeping mistake translates directly into tax penalties. By building a "service as software" model, mika is challenging the traditional tax advisory monopoly that many German founders view as an unavoidable cost of doing business. This announcement signals a shift in how vertical AI is applied to highly regulated industries; rather than just providing tools for professionals, the software is becoming the professional service itself. The rapid growth in diverse sectors like retail and skilled trades suggests that the appetite for automated compliance extends far beyond the tech-savvy startup bubble. It puts significant pressure on traditional mid-market tax firms to justify their fees as AI-native ledgers begin to handle the heavy lifting of German GAAP compliance.