Cross-border payment platform Kapaga has raised £1.5m in a seed round of funding led by Target Global.
The London-based company will use the funding to develop new platform features, such as virtual cards, and plans to expand its offering across Europe this summer.
Kapaga is an international payments platform that provides business bank accounts and multi-currency payment services for SMEs based in the UK. It also automates the onboarding of customers.
“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,” said Katya Dorofejeva, CEO, Kapaga.
“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,” added Dorofejeva.
Kapaga was founded in 2021 by Katya Dorofejeva, employs over 20 staff and has more than 150 users.
The funding round follows a bumper 2021 for UK fintech investment, with companies raising $11.6bn in capital.
“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,” said Ricardo Schaefer, partner, Target Global.
Kapaga also raised capital from angel investors Chris Adelsbach, Andreas Mihalovits, and Mark Ransford.