Kapaga

# Kapaga: A Cross-Border Payment Platform for Global SMEs

High-Level Overview

Kapaga is a UK-based fintech company that provides B2B cross-border payment services and business banking solutions for small and medium-sized enterprises (SMEs) and startups.[1][2] The platform addresses a critical gap in the market: many SMEs lack access to modern payment infrastructure or face rejection from traditional financial institutions, leaving them unable to scale internationally with ease.

Kapaga's core offering enables businesses to send and receive payments across 190+ countries in multiple currencies through a single, cloud-based application.[1][2] The company differentiates itself by automating customer onboarding in under 48 hours and offering payment services at significantly lower costs than traditional banks.[2] With over 150 clients and a distributed team of more than 20 employees, Kapaga has established itself as a trusted solution for businesses seeking transparent, efficient cross-border payment infrastructure.

Origin Story

Kapaga was founded in 2020 by Ekaterina (Katya) Dorofeeva, a Russian entrepreneur who identified the underserved market of SMEs struggling with international payments.[1][2] The company operates as a trademark of neobank Finadvant, also founded by Dorofeeva alongside Leonid Pruzhansky.[1]

The startup gained early traction by targeting businesses explicitly rejected by legacy financial providers. By 2022, just two years after launch, Kapaga had attracted over 150 customers and secured £1.5 million in seed funding led by Target Global, with additional backing from angel investors including Chris Adelsbach, Andreas Mihalovits, and Mark Ransford.[2][3] This funding round validated the company's market opportunity and enabled expansion plans across the European Union.

Core Differentiators

• Speed of onboarding: Kapaga activates new customers in under 48 hours, compared to the weeks-long processes typical of traditional banks.[2]

• Cost efficiency: The platform offers payment services at a fraction of the cost of high street banks and legacy providers, directly addressing price sensitivity among SMEs.[2]

• Comprehensive currency coverage: Support for 190+ countries and multiple currencies through a single dashboard eliminates the need for multiple payment providers.[1][2]

• Cloud-native architecture: The platform provides transparency and efficiency in streamlining cross-border payments, with automated customer onboarding and integrated payment management.[1][2]

• Planned feature expansion: As of 2022, Kapaga planned to introduce virtual cards and mass global payment services to broaden its value proposition.[2]

Role in the Broader Tech Landscape

Kapaga operates within the broader fintech democratization trend, where technology is removing barriers to financial services traditionally gatekept by incumbent banks. The company rides several converging forces: the globalization of SME commerce, the inadequacy of legacy banking infrastructure for digital-native businesses, and investor appetite for financial inclusion solutions.

Target Global's backing—a firm with €3 billion in assets under management and a track record of backing 15 unicorns including Revolut—signals institutional confidence in the cross-border payments category.[3] Kapaga's emergence reflects a wider shift toward embedded finance and infrastructure-as-a-service models, where payments become a commodity utility rather than a premium service.

Quick Take & Future Outlook

Kapaga represents a compelling opportunity in the underserved SME payments segment, where regulatory tailwinds (open banking, PSD2 in Europe) and technological maturity have created conditions for disruption. The company's European expansion strategy, announced for summer 2022, positions it to capture growth in a fragmented regional market where cross-border friction remains high.

Looking ahead, Kapaga's success will depend on execution of its virtual card roadmap, retention of its growing customer base, and navigation of increasingly competitive fintech payments landscape. The company's ability to maintain its cost advantage while scaling operations—and its potential to expand beyond payments into adjacent financial services—will determine whether it becomes a category leader or a niche player acquired by a larger fintech or traditional bank.