Boom, bust, and big losses — inside 21 of Sweden’s top impact AI startups

Impact-focused AI companies are attracting more and more venture capital. Several new Swedish startups have emerged in this growing niche of late – some with high valuations.

Now Impact Loop has reviewed the annual accounts of 21 Sweden-based companies to see how things are going.

One startup has gone bankrupt and many others are making big losses. However, most of the companies on the list have high expectations for growth.

Many companies are young and only have one financial statement behind them, but some – like grid flexibility provider Flower and the food waste cutter Appetite – have been around longer (more about their journey below).

If we have missed any companies – please let us know!

Before we dive into the list, let's look at three examples.

Bankruptcy of food waste company

After several tough months, Appetite, which helps restaurants reduce food waste using AI, went into bankruptcy earlier this month. The company had lost several large customers and finally couldn't go any further, despite revenues of over SEK 10 million (€900k) in 2024.

Appetite CEO Jacob Kihlbaum he told Impact Loop that a major customer issue proved the nail in the coffin. In early 2024, the company pivoted from grocery retailers to restaurants – a move that resulted in promising projects with clients such as the Swedish hamburger chain Brödernas.

"When they entered reconstruction in the fall of 2024, it put a damper on both our liquidity and an ongoing seed round we were well advanced in," Jacob Kihlbaum wrote to Impact Loop Sweden.

H&M-backed startup combating product returns

Ecomid was founded by Oscar Rundqvist, who has a background in digitalisation at fast fashion retailer H&M. Through their platform, they want to tackle unsustainable shopping behaviour, which includes reducing the amount of times an item is returned – something that can result in unnecessary transportation, high costs, and associated carbon emissions.

In 2024, the company raised SEK 30 million (€2.7m) in funding round led by Capital T and H&M Ventures.

In the company's first financial statements in 2024, revenue was still modest and amounted to just SEK 25,000 (€2200), while operating profit amounted to just over SEK -2 million (-€180K).

However, the company states on its website that they collaborate with well-known brands such as ICIW, Björn Borg, and & Other Stories – and that one million consumers use their platform daily.

"We are not currently prioritising revenue, but rather on building and improving the product," Oscar Rundqvist previously told Swedish publication Di.

Product launch for the "animal scarecrow"

Flox, which develops AI technology to stop wild animals from colliding with trains and other vehicles, stepped on the gas hard last year.

Turnover remains unchanged at just under SEK 3 million, but the company previously told Impact Loop that it had intentionally invested a lot of money in development in 2024. This has resulted in a negative result of just over SEK 5 million (€450m) in 2024.

"We raised a round before the year and used the money to double the number of people in the technology and product development team," says CEO Sára Nožková.

Flox is expected to launch a new product and announce a new funding round imminently. The plan is also to at least double sales in 2025 and reach profitability by the end of 2026, the company says.