A Dutch financial management platform for SMEs and freelancers is expanding into the UK after acquiring Kapaga.
FINOM agreed an eight-figure sum for the London-based cross-border payment service facilitating international trade for SMEs. Both companies are backed by Target Global.
According to FINOM, just 3% of the 24 million European SMEs use digital platforms to manage their finances. The majority of owner-managed businesses continue to use traditional banks, despite the growth of the FinTech sector globally.
FINOM’s mobile-first platform blends a wide range of high-quality financial management products into a back-office solution for entrepreneurs and freelancers. The suite of features available includes e-invoicing, transactions within the Single Euro Payments Area (SEPA), and digital wallets.
Since launching in 2019, FINOM has seen impressive growth in France, Italy and Germany, where it is the most-downloaded FinTech app for SMEs. Live in 27 countries, it has plans to expand into other key European markets.
Founded in 2020 by Bloomberg alumna, Katya Dorofejeva, Kapaga has seen revenue growth surpassing £10m a year, serving more than 200 UK SMEs and corporate entities in managing their finances and operating internationally across multiple currencies.
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Its 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 a single and secure application process.
“Entrepreneurs and freelancers are the backbone of the European economy, producing $8 trillion of value annually, but costly and time-intensive bureaucracy means they cannot run their business as efficiently as possible,” said Kos Stiskin, co-founder of FINOM.
“At FINOM, we truly believe in the value of collaboration, and working with Katya and her highly experienced team will enable us to create a product for SMEs that meets all our customers’ banking needs.”
Katya Dorofejeva, founder and CEO of Kapaga, added: “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.”
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