PayTech Kapaga was bought by FINOM for an “eight-figure sum.” FINOM is a company that helps small and medium-sized businesses and freelancers manage their finances.
With this purchase, FINOM hopes to strengthen its position in financial services and help its plans to grow in the UK and Europe.
Only 3% of the 24 million SMEs in Europe use digital services to handle their finances, according to FINOM. Even though the FinTech sector and personalized offerings are growing, most small businesses that are run by their owners still use traditional banks.
Because of this problem, FINOM was made. It has set up a mobile-first platform that offers SMEs and freelancers a wide range of financial management products for the back office. E-invoicing, transactions in the Single Euro Payments Area (SEPA) and digital wallets are some of the features.
The app has grown a lot in France, Italy and Germany since it came out in 2019. It is now available in 27 countries. It wants to grow into more markets in Europe soon. It wanted to grow, so it bought Kapaga to help it reach this goal.
Katya Dorofejeva, who used to work at Bloomberg, started Kapaga in 2020, and it now makes more than £10 million a year. It works as a cross-border payment service that makes it easier for SMEs to trade internationally.
At the moment, Kapaga helps more than 200 SMEs and corporations in the UK manage their finances and work internationally in different currencies. Its cloud architecture is open and efficient, and it lets people send money to more than 190 countries.
Kapaga founder and CEO Katya Dorofejeva said, “Joining forces with FINOM enables us to explore a unique and growing product. Entrepreneurs and freelancers are facing a plethora of challenges in setting up tactile business accounts that serve their needs. 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. Kos and the team really understand the market and the specific needs of small and medium-sized businesses. I am sure that we will benefit from each other’s knowledge and expertise to serve this crucial segment and grow the fintech arena.”
FINOM and Resistant AI, a company that works to stop financial crimes, made a deal at the beginning of the year. Through the deal, FINOM has made it easier to keep track of transactions and find any strange or odd behavior.
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