In 2024, fintech became the most funded startup sector in Lithuania, reclaiming its leadership after an underwhelming year 2023, new data released by Dealroom show.

Fintech startups in Lithuania secured EUR 48.8 million in funding in 2024, representing 38% of the total EUR 128 million raised by startups across all verticals.

Top industries by VC investment volume in 2024, Source: The Lithuanian Startup Ecosystem 2024, Dealroom, Jan 2025

The figure marks a significant recovery from 2023, when fintech startups attracted a mere EUR 7.2 million, according to Dealroom data. The sum ranked fintech sixth in funding in 2023, a far cry from the sector’s prominence in 2022 during which it stood as the second most funded startup vertical.

A key driver of the resurgence of fintech was the sector’s dominance in securing some of 2024’s largest investments. According to Dealroom, half of Lithuania’s ten biggest funding rounds in 2024 went to fintech companies:

• Argyle, a provider of direct-source access to real-time income and employment data, secured a EUR 13.6 million Series C in March to enhance the adoption and expansion of its automated income and employment verification platform;
• TransferGo, a UK-based fintech startup with Lithuanian roots, raised EUR 9.1 million in April to accelerate its growth in Asia-Pacific (APAC) region and support the expansion of its new product offerings;
• Bourgeois Boheme, a financial management platform, raised EUR 6.5 million in a seed round in August to enhance its product offerings, expand functionalities for managing high-volume payments, and open the Middle East and North Africa (MENA) region for its clients.
• Vixichain, a startup aiming to bridge blockchain technology and traditional finance, raised US$7 million in the presale phase of its utility token VIXC in October to accelerate the development of its blockchain infrastructure; and
• Fideum, a crypto startup, secured a EUR 5.5 million Series A in December to fuel its growth, building on revenue momentum and client growth recorded in 2024.

Lithuania leads the Baltic fintech scene

Across the broader Baltic region, Lithuania secured the most fintech funding in 2024, data from Dealroom show. Across Central and Eastern Europe (CEE), this figure puts the country at the third place, further cementing its status as a prominent fintech hub.

A powerhouse of financial innovation, Lithuania is the largest hub in the European Union (EU) based on the number of licenses issued, according to Invest Lithuania, the country’s investment promotion agency. The country currently hosts over 270 fintech companies, collectively serving more than 27 million European customers.

Several factors have contributed to the growth of the sector. For one, Lithuania offers a strong government support system and several initiatives designed to facilitate business incorporation, foster collaboration and accelerate innovation. Organizations such as Startup Lithuania, part of Innovation Agency Lithuania, Invest Lithuania, Go Vilnius and Vilnius Techfusion, offer networking opportunities, acceleration programs, and comprehensive business services for young startups looking to establish a presence in the country.

Another main reason Lithuania attracts so many fintech companies is its highly skilled, multilingual workforce. The country boasts a large talent pool of 90,000 finance professionals, 70,500 tech professionals, 12,000+ experts in compliance and risk management, and 7,400 fintech sector professionals, providing a solid foundation for financial innovation.

Fintech in the Baltics

Besides Lithuania, Estonia is another prominent fintech hub in the Baltics. In 2024, Estonian fintech startups raised a total of EUR 41 million in funding, ranking second in the region and fourth in the broader CEE.

Estonia’s fintech journey is rooted in e-Estonia, the country’s e-government initiative. This digital transformation has been supported by the development of electronic identification, smart contracts, high-speed connectivity, and enabling legislation.

Estonia is also a leader in blockchain technology, having utilized decentralized, distributed systems since 2001 and blockchain since 2008. Guardtime, one of the world’s largest blockchain companies, was born in Estonia and continues to have significant operations in the country.

Finally, in payments, Estonia has produced globally successful companies including award-winning Monese, and cross-border payment giant Wise. Both still have significant research and development (R&D), engineering, and 24/7 multilingual client service operations locally.

While Estonia and Lithuania have long been fintech leaders in the region, Latvia is rapidly emerging as a key player. In 2024, Latvia’s fintech sector continued to grow and evolve, driven by rapid technology advancements, new companies entering the sector, and strategic partnerships to boost growth.

Mintos, an alternative investment platform, raised EUR 3.1 million to expand into EU markets, enhance its platform, and improve product offerings; Jeff App, a financial marketplace for emerging economies, raised US$2 million to enter new markets and expand its suite of financial services and products; and Indexo introduced in August a new neobanking solution designed to improve service delivery and enhance customer experience.

VC funding on the decline

VC funding across the Baltics continued to decline in 2024, carrying on a downtrend that began in 2021. Baltic tech startups raised a combined EUR 506 million in 2024, according to the Baltic Startup Funding Report by Change Ventures and Firstpick, down 31% year-over-year (YoY) from EUR 734.1 million in 2023.

Featured image credit: edited from freepik