German AI startup mika raises €6M to simplify accounting and tax for SMEs

Berlin-based mika has closed a €6 million seed round to push its AI accounting software deeper into German small-business finance. Smedvig Ventures led the round. Wecken & Cie. joined from Basel, along with angel investors Dennis Bemmann, Michael Brehm, Johannes Ditterich and Martina Pfeifer. Keen Venture Partners and Dutch Founders Fund, both existing backers, put in more money too.

The pitch is straightforward: Germany has almost one million small incorporated businesses, mostly GmbHs and UGs, and they have to keep accounts and file taxes. In theory, owners can do that themselves. In practice, the rules are messy enough, and the penalties scary enough, that many hand the whole thing to tax advisers or specialist firms.

mika wants to sit in the middle of that process with what it calls an AI-native financial operating system for SMEs. The platform handles bookkeeping, VAT returns, annual accounts and tax filings. At its core is a general ledger built specifically for German accounting, which reads receipts and payments, categorises transactions and explains entries back to users. Different AI models are used for different tasks, alongside accounting rules and domain knowledge developed by mika itself.

Human accountants still sit in the loop. Trained staff review the output and step in when cases need a person. Users can also query their finances through mika directly, or through the Model Context Protocol with assistants such as ChatGPT or Claude. The system can explain letters from tax authorities and answer questions about company accounts and finances, but it does not provide individual tax advice. For that, mika works with licensed tax advisers in its network.

The startup says it had around 400 GmbHs and UGs using the product at the start of the year, and more than 750 today. It began with digital-first service businesses such as agencies and consultancies, then widened out to SaaS, property, e-commerce, retail and skilled trades. The new cash will go toward growth and further product development.