SME financial services provider Finom acquires international paytech Kapaga

Small and medium-sized business (SMB) online financial services provider Finom has acquired Kapaga, an international payment platform.

The agreement is expected to assist Finom’s expansion plans in the UK and Europe, and is valued at least £10 million. Finom is a “leading financial services provider” for small and medium-sized businesses.

With this transaction, Finom will be able to consolidate its disparate paytech offerings for small and medium-sized businesses, as well as large corporations, across the United Kingdom and Europe.

“Entrepreneurs and freelancers are the backbone of the European economy, delivering $8 trillion of value yearly,” explains Kos Stiskin, co-founder of Finom. “However, due to costly and time-intensive bureaucracy, they are unable to run their business as efficiently as possible.”

According to Stiskin, “all our clients’ banking needs” will be met by the new organization formed by combining Kapaga and Finom.

With only 3% of European SMEs adopting digital platforms to manage their finances, Finom claims the B2B financial services for SMEs market in Europe is “currently underserved,” with the rest still relying on traditional banks.

Electronic invoicing, Single Euro Payments Area (SEPA) transactions, and digital wallets are just some of the financial management tools that Finom’s mobile-first platform integrates into a back-office solution.

Kapaga was founded in 2020, and its cloud architecture provides businesses with “transparency and efficiency” in expediting cross-border payments by enabling them to transfer and bill money in a variety of currencies to 190+ countries using a single, safe application.

Kapaga CEO and co-founder Katya Dorofejeva says, “There is currently no continental fintech company that equally serves the UK and Europe in primarily targeting SMEs – until now.”

With this merger, two firms will be able to more effectively pursue their goal of offering specialized payment services over the entire continent.