Kashimi Secures $1.36M to Drive Expansion of Alternative Payment Infrastructure

Lithuanian startup Kashimi, which develops alternative payment infrastructure for regulated and licensed financial institutions globally, has secured a pre-seed investment of USD 1.36 million. The round was co-led by venture capital funds Coinvest Capital and U.S.-based Impellent Ventures, joined by Plug and Play Tech Center and international  business angels. 

According to the company, the main goals of the investment, which totals USD 1,358,500, are twofold. First, the company will target the European and UK markets more broadly, as both regions are beginning to adopt alternative payment methods on a larger scale. Another key objective is to expand into the U.S. market, following initial steps that were taken by the end of 2024 to open up entry opportunities.

“Alternative payment methods, which started to appear in Europe and the UK following the introduction and implementation of Open Banking regulations seven years ago, are finally gaining momentum. Customers are  increasingly accustomed to these solutions, and it is the right time for various financial institutions - banks, electronic money institutions, or others - to expand their merchant offerings. The U.S. is  introducing a similar concept and actively promoting the development,” noted Benas Pavlauskas, Kashimi’s co-founder and CEO.

At this investment stage, the startup will have the opportunity to gain significant experience in the United States, Silicon Valley – Kashimi has been selected to participate in a 6-week GOAL (Global Overseas Acceleration and Learning) program organized by one of its investors, the accelerator Plug'n'Play. The program includes various workshops and meetings with top-level experts and potential partners. The Kashimi team anticipates returning from the United States with enhanced expertise and newly established relationships with partners and potential investors. Operating for almost a year, the startup has already begun integrations with its first clients.

Meanwhile, Impellent Ventures expressed excitement about partnering with the Kashimi team to advance frontier tech in open banking across Europe and the US. “We think the crew is comprised of some of the most innovative and experienced thinkers and tinkerers in the space - and we can’t wait to see what they cook up in order to create value for their customers and stakeholders alike. Combined with being our first foray with Coinvest Capital, we couldn’t be more amped up for the future of this one,” said Phil Beauregard, Managing General Partner at Impellent Ventures.

“Alternative payment methods are not a niche anymore. Merchants are eager to adopt new payment methods, and customers want to control their spending while feeling secure. For payment service providers, alternative payments are the next frontier; however, success favors solution providers who demonstrate competence, a broad vision, and strong ambition. Kashimi payment initiation infrastructure stands out for its convenience and completeness. This segment is gaining momentum in the U.S., and Kashimi has a great opportunity to ride the wave of growth. We are happy to have experienced US investors joining the round," commented Viktorija Trimbel, CEO of Coinvest Capital.

Coinvest Capital share in this investment totals 749 984,58 USD.

Kashimi’s cutting-edge payment infrastructure showcases how Lithuanian technology can compete on a global scale, Povilas Žinys, Director at Plug and Play Lithuania, noted: “We see tremendous potential for their solution in international markets and are proud to support their journey through Plug and Play’s global network. We also expect the GOAL program to help Kashimi achieve its global expansion goals.”

Kashimi is a technology company bringing together a team of 10 professionals – experienced IT engineers specializing in open banking.

About Coinvest Capital

Coinvest Capital is a sovereign venture capital fund established by the national development bank ILTE. The fund invests public funds of EU and Republic of Lithuania, alongside private investors, in promising European start-ups that create value for Lithuania. Since the beginning of its operations, the Fund, together with its partners, has invested in 49 startups and exited 6 investments. The total venture capital deployed amounts to more than €57 million, of which €25.0 million was contributed by Coinvest Capital. Under the profit-sharing model, private co-investors have contributed €12.9 million, while an additional €19.1 million has been invested under the pari-passu model.

The Fund offers a globally unique profit-sharing program, capping its annual return on investments at 4 to 8 percent. In the event of a successful exit, any return exceeding this cap is allocated to accredited private co-investors. Out of the €44.3 million in committed capital entrusted to the Fund, €13.1 million remains available for new investments following this transaction.