Amid a challenging climate for investment, Eastern Europe has remained strong.
According to Fintech Baltic, investments in Q2 2022 were almost double the same period in 2021. Fintech was investors’ favored sector, accumulating 20% of the total investment in the area.
This news continues the favorable year experienced by Eastern Europe, starting with an 80% increase in investments in Q1 2022.
A receiver of said investment was HTECH, which in January 2022 closed a $140 million funding round aimed at global expansion. The company is said to be one of Europe’s fastest-growing digital services, posting 100% annual growth.
Today, the company followed up on global expansion objectives by acquiring Mistral, becoming the largest tech company in Bosnia and Herzegovina.
Extended full spectrum tech
Serbian-founded, U.S-based tech group HTECH provides software solutions for the full spectrum of the technology sector. In fintech, they have delved into banking and wealth management solutions, implementing their experience with AI, Machine learning Cloud, and security protocols.
Globally, HTEC’s team has grown to more than 2,000 employees, with development centers across Southeast Europe and creative and consulting offices in Silicon Valley, London, New York, Minneapolis, Amsterdam, Stockholm, and Gothenburg.
“The idea is to merge the best of what Southeast Europe has, and that is sophisticated engineering, with product design in the United States and Great Britain,” said Aleksandar Cabrilo, co-founder and CEO of HTEC Reuters, earlier this year.
Combining the Silicon Valley-based design approach with their engineering expertise from South East Europe, HTEC supports global clients with complete digital product development. The partnership with Mistral extends HTEC’s expertise in fintech and other tech industries, incorporating their existing client portfolio of Fortune 500 companies.
“I am happy to say that today we acquired Mistral Technologies. Going forward, we will continue to bring together by far the most talented technical and creative professionals in Southeast Europe and expose them to global market opportunities,” said Cabrilo.
“We are perfectly aligned with HTEC Group in terms of our values and service delivery, and I am confident we will soon become the most desired partner of choice globally for the most complex engineering challenges,” said Mersed Camdzic, co-founder and CEO of Mistral.
Influencing global markets with Eastern European innovation
The news, although not wholly fintech-centric, could impact the fintech industry significantly.
Last year, many touted Eastern Europe as the “next Silicon Valley.” The region, valued for its highly skilled yet low-cost workforce and attractive regulatory environment, has attracted many large fintechs, with Revolut and CoinGate setting up bases in its folds.
Investment has continued to increase in the area, despite its proximity to the Ukrainian and Russian conflict. Some see the area as essential to aiding innovation in the fintech sector.
Many of HTEC and Mistral’s clients reside in the US and UK, providing a direct link to the largest fintech hubs in the world. HTEC’s ascension to becoming the largest tech company in Bosnia and Herzegovina could make them a critical player in the future of eastern Europe’s involvement in the global fintech market.