Kapaga, the UK-based cross-border payment platform for small and medium enterprises (SMEs), has announced a £1.5m funding round led by Target Global and with participation from well-known angel investors in the fintech space, Chris Adelsbach, Andreas Mihalovits, and Mark Ransford.

Launched  in 2021 by Katya Dorofejeva, Kapaga’s rapid success is a testament to the versatile payment solutions it offers its clients. Kapaga has a host of B2B payment services designed to serve this smaller but no-less globalised market of SMEs and start-ups. 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 one secure and streamlined application. 

Many SMEs lack access to a modern payment infrastructure or are rejected by traditional financial services providers who are very rigid in the types of solutions they can offer their clients. Targeting this underserved segment of newly formed businesses, Kapaga has won the trust of more than 150 clients, by giving them the ability to scale their businesses internationally and contributing to the overall success of the company.

With a rapidly growing team of more than 20 employees who work remotely from across the globe, Kapaga will be expanding its operations across the EU this summer.  This will allow Kapaga to continue to build out its platform as it looks to introduce mass global payments and virtual cards in the coming months.  

Katya Dorofejeva, Kapaga’s CEO said, “We are excited to offer our customers an unrivalled experience when it comes to accessing a reliable and transparent tool for cross-border payments. Our value lies in our ability to remove hurdles when it comes to opening business bank accounts and offering payment services at a fraction of the cost versus high street banks and legacy providers. We aim to board and activate customers in under 48 hours, start to finish. All of this is now available through one application and one dashboard to stay in control of your payments.”

Ricardo Schaefer, Partner at Target Global said, “We’re excited to back Kapaga, a tool that we believe represents a true stepchange in the direction the global payments industry is moving in. Kapaga delivers a democratised solution across all SMEs, allowing them to grow and scale their businesses globally in a seamless way. We are confident that given its unique technology and Katya’s strong leadership, it will go on to become an industry leader in the years to come.”