The BBC reports the team came together in 2011, exiting Nokia after it ditched the MeeGo operating system in favour of Windows.
"For a couple of years we haven't had anything really interesting in the mobile phone market," said Antti Saarnio, Jolla chairman and co-founder, told the BBC.
The Jolla phone is compatible with Google’s Android applications. It is a 4.5-inch, dual-core, 4G-enabled device with 16GB of internal storage and a replaceable battery.
Retailing for US$524, the phone will be initially only available online. It is now available for pre-order and will be shipped first to European countries. The company is also aiming to focus on the Asian market.
Saarnio told the BBC he felt the MeeGo operating system was not given the chances it deserved by Nokia, who used it as the operating system for just one phone
“The team really felt that this was one of the best phones in the market, even though it was quite under-marketed," he said.
"Everybody felt so strongly that they wanted to continue.”