FINOM to acquire UK-based cross-border payments facilitator Kapaga to help expand in the UK and Europe.
The two payment services will be combined, and company officials say there’s a real commitment across both businesses to provide European SMEs (small and medium-sized enterprises) with innovative fintech, setting a “new standard” for the industry.
Kapaga was set up in 2020 by Katya Dorofejeva, an alumna of financial market analysis and news service Bloomberg, and since then has seen annual revenue soar above the £1 million threshold.
That success is down to the 200 UK SMEs and corporate entities which now use Kapaga’s product, a cloud-based architecture that supports business-to-business payments and invoicing in more than 190 countries and several different currencies.
FINOM was founded in 2019 as a “mobile-first” access point for B2B financial services, tailored to the needs of entrepreneurs and freelancers with electronic invoices, cross-border SEPA payments and digital wallets.
It’s since expanded across 27 countries employing some 150 full-time staff across France, Germany, Italy and the Netherlands. FINOM claims its app is also the most downloaded fintech app in France, Germany and Italy.
The acquisition came about following a networking chat at a ski event for connecting startup founders hosted by London VC Target Global, a shared investor across FINOM and Kapaga.