Kapaga, a UK-based cross-border payment platform for SMEs, has announced that it has secured £1.5 million in seed funding. The investment round was led by Target Global (that recently backed Lepaya) alongside participation from well-known angel investors in the fintech space – Chris Adelsbach, Andreas Mihalovits, and Mark Ransford.
Virtual cards coming soon
With a rapidly growing team of more than 20 employees, Kapaga will be expanding its operations across Europe this summer. It will allow the company to continue to build out its platform as it looks to introduce mass global payments and virtual cards in the coming months.
Katya Dorofejeva, Kapaga’s CEO said, “We are excited to offer our customers an unrivalled experience when it comes to accessing a reliable and transparent tool for cross-border payments. Our value lies in our ability to remove hurdles when it comes to opening business bank accounts and offering payment services at a fraction of the cost versus high street banks and legacy providers. We aim to board and activate customers in under 48 hours, start to finish. All of this is now available through one application and one dashboard to stay in control of your payments.”
Ricardo Schaefer, Partner at Target Global said, “We’re excited to back Kapaga, a tool that we believe represents a true stepchange in the direction the global payments industry is moving in. Kapaga delivers a democratised solution across all SMEs, allowing them to grow and scale their businesses globally in a seamless way. We are confident that given its unique technology and Katya’s strong leadership, it will go on to become an industry leader in the years to come.”
Why issue does Kapaga address?
Many SMEs lack access to a modern payment infrastructure or are rejected by traditional financial services providers who are very rigid in the types of solutions they can offer their clients.
With a focus on this underserved segment of newly formed businesses, Kapaga was founded in 2021 by Latvian born Katya Dorofejeva. It offers them the ability to scale their businesses internationally and contribute to the overall success of the company. The fintech has a host of B2B payment services designed to serve this smaller but no-less globalised market of SMEs and startups.
The cross-border payments platform lets users open business accounts and provide multi-currency payment services to small and medium-sized companies in the UK, and soon to Continental Europe.
Kapaga’s cloud architecture offers companies transparency and efficiency in streamlining cross-border payments, thereby allowing them to send and bill money to over 190 countries in numerous currencies via one secure and streamlined application. It achieved rapid success, thanks to the versatile payment solutions it offers its clients.