The UK-based cross-border payment platform for SMEs, Kapaga, has closed a £1.5 million funding round. The investment was led by Target Global, with participation from angel investors from the fintech industry, including Chris Adelsbach, Andreas Mihalovits, and Mark Ransford. With the new money in the cash register, Kapaga wants to expand to Europe.
Many SMEs do not have access to a modern payment infrastructure or are rejected by traditional financial service providers who are very rigid in the solutions they can offer their customers. Kapaga is targeting this underserved segment of newly formed businesses with a cross-border payment platform. Founded in 2021 by Katya Dorofejeva, the start-up provides multi-currency payment services to small and medium-sized companies in the UK.
Kapaga CEO Katya Dorofejeva said, “Our value lies in our ability to remove barriers to opening business accounts and provide payment services at a fraction of the cost compared to big banks and traditional providers.” According to the CEO, the company can onboard customers in less than 48 hours.
Ricardo Schaefer, Partner at Target Global, added: “Kapaga is a tool that represents a real step in the global payments industry’s direction. It provides a democratized solution for all SMBs that allows them to grow their businesses and scale globally seamlessly.”