SME financial services provider Finom buys cross-border paytech Kapaga
Finom, a fintech providing online financial services to small and medium-sized enterprises (SMEs), has acquired cross-border paytech Kapaga in a deal worth at least £10 million.
The merger will allow Finom to unify separate paytech services for freelancers, mid-sized firms and corporate clients across the UK and Europe and boost its expansion plans.
Finom co-founder Kos Stiskin says: “Entrepreneurs and freelancers are the backbone of the European economy, producing $8 trillion of value annually, but costly and time-intensive bureaucracy means they cannot run their business as efficiently as possible.”
Stiskin says that by folding Kapaga into Finom, the new entity will offer a product for SMEs “that meets all our customers’ banking needs”.
Finom says the SME B2B financial services market in Europe is “currently underserved” with just 3% of European SMEs using digital platforms to manage their finances, “emphasising the gap in the market”, with the majority still relying on traditional banks.
Finom’s mobile-first platform incorporates financial management products, such as e-invoicing, transactions within the Single Euro Payments Area (SEPA), and digital wallets, into a back-office solution.
Founded in 2020, Kapaga’s cloud architecture offers companies “transparency and efficiency” in streamlining cross-border payments, allowing them to send and bill money to 190+ countries in numerous currencies via a single and secure application process.
Katya Dorofejeva, founder and CEO of Kapaga, comments: “There is currently no continental fintech player that equally serves the UK and Europe in specifically targeting SMEs – until now.
“This merger solidifies two companies’ pursuits of providing tailored payment services for the entire continent.”