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Participating in Xolo's investment round were Karma Ventures from Estonia, Vendep Capital from Finland, Leap Ventures from France and a number of smaller investors. Xolo's previous investors include Singapore's Mistletoe, a few dozen Estonian and Nordic business angels and crowdfunding platform Funderbeam, the company said.

With the help of the online platform of the company, originally founded in 2015, people can establish a private limited company in Estonia, open a bank account and use an automatized accounting service, Xolo said.

Along with the change of name, Xolo is to launch a service that will enable individual entrepreneurs to start business within minutes without registering a new company. A "virtual company" gives freelancers almost all the functionality of a fully-fledged business -- including a bank account, billing, expense management and salary payouts -- without ever registering one.

Every virtual company established with the help of Xolo will have its own bank account and accounting environment. In the legal sense, the service, Xolo Go, is based on a partnership agreement with Xolo that allows freelancers to use Xolo as their legal entity. 

"A virtual company is a new concept that is ideal for professionals who are just starting their business, provide services on a small scale or episodically," Allan Martinson, Xolo CEO, said.

Xolo is the largest service provider of companies of Estonian e-residents, holding a market share of approximately 40%. Most of Xolo's customers are from European Union countries, but there are customers also from Ukraine and Turkey. The total revenue of Xolo's customers exceeds 10 million euros per month, while Xolo's customers left 2.2 mln euros in taxes and state fees in Estonia in 2018.

Xolo is a software service with a monthly fee and the company's revenue totaled 1.2 mln euros in 2018. Xolo has 62 employees in Tallinn, Tartu and London.