German AI startup mika raises €6 million for SME accounting

Berlin-based vertical AI startup mika has raised €6 million in a seed funding round. The investment was led by pan-European investor Smedvig Ventures.

Other participants included the Basel-based family office Wecken & Cie. (Care4 AG) and angel investors Dennis Bemmann, Michael Brehm, Johannes Ditterich, and Martina Pfeifer. Existing investors Keen Venture Partners and Dutch Founders Fund also increased their stakes in the company.

Mika is building an AI-native financial operating system designed for Germany's small and medium-sized enterprises (SMEs). The platform handles ongoing bookkeeping, VAT returns, annual accounts, and tax filings. Its core is an AI-native general ledger developed specifically for German accounting rules.

How the AI system operates

The technology processes receipts and payments, using different AI models tailored to specific tasks. These models are combined with established accounting rules and domain knowledge developed in-house by mika. The system categorises transactions, records them in the ledger, and provides explanations for individual entries to the user.

Trained accountants employed by mika review the AI's results and intervene in cases that require human judgment. The company states that individual tax advice is not part of its service; instead, it works with a network of licensed tax advisers.

Integration and user growth

Users can query their financial data directly through mika's platform or via the Model Context Protocol (MCP) using AI assistants like ChatGPT or Claude. The system can also explain correspondence from tax authorities and answer questions about company accounts.

Founder and CEO Agnieszka Walorska criticised the perceived necessity of a tax adviser for German incorporated companies. "The moment you start a GmbH in Germany, you're told you need a tax adviser." she said. 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.

The company has seen significant user growth in 2026. At the start of the year, approximately 400 GmbHs and UGs were using mika. Today, that number exceeds 750.

Target market and expansion

Mika initially focused on digital-first service businesses like agencies and consultancies. It has since expanded its customer base to include companies in SaaS, property, e-commerce, retail, and skilled trades. The startup is targeting the nearly one million small incorporated businesses in Germany, most of which are GmbHs or UGs, which are legally required to maintain accounts and submit tax filings.

The new €6 million in funding will be used to support the company's growth and for further development of its AI platform.