FlapKap, Egyptian Fintech, Raises $34 Million Pre-series A to Scale SME financing across MENA

In an exciting development for the fintech landscape in the MENA region, FlapKap, an Egypt-born and Abu Dhabi-based fintech platform, has successfully raised $34 million in a pre-Series A funding round. 

This significant financing comes nearly two years after the company secured $3.6 million in seed funding, bringing its total funding to an impressive $37.6 million. 

The latest funding round was a mix of debt and equity investments, led by BECO Capital, and included substantial contributions from Pact VC, with follow-on investments from A15, Nclude, and QED Investors, alongside debt financing from Channel Capital.

Mission to Empower SMEs

FlapKap aims to leverage this new investment to enhance its small and medium enterprise (SME) financing services across the Middle East and North Africa (MENA) and the Gulf Cooperation Council (GCC) region. 

A significant portion of the funds will be allocated to enhancing the fintech’s technology infrastructure, enabling the launch of trade finance products targeted specifically at B2B businesses.

The company, co-founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, focuses on providing revenue-based and embedded financing solutions for SMEs, particularly in the e-commerce, retail, and restaurant sectors. 

By offering instant funding with the flexibility for SMEs to pay later, FlapKap assists these businesses in scaling their inventory and digital marketing efforts.

Overcoming Financial Challenges

FlapKap directly addresses the financial obstacles faced by many SMEs in the MENA region, particularly those with limited access to traditional bank loans or venture capital. 

The platform streamlines the loan approval process, significantly decreasing the time it takes for businesses to secure funding. 

Ahmad Coucha, FlapKap’s CEO and co-founder, emphasized, “The growth in data has made it easier than ever to support SMEs. This investment will facilitate our continued growth in the UAE and Egypt and support our expansion into the rest of the GCC.”

FlapKap employs a data-driven approach that integrates unconventional data sources, including e-commerce platforms, social media, payment gateways, and bank accounts, to assess loan applications. 

By using AI-powered models and open banking practices, the fintech company can provide precise underwriting while effectively reducing operational costs.

Rapid Approval Process

With its services now extended to a broader array of online and offline SMEs, FlapKap claims it can evaluate, approve, and provide financing offers to businesses in less than 48 hours from their sign-up. 

This rapid service is crucial in a region where SMEs constitute up to 90% of all businesses yet often struggle to secure the necessary financial support to evolve.

Read Next: Egyptian Fintech Bokra Raises $4.6 Million for Expansion

Addressing a Major Financing Gap

FlapKap is dedicated to addressing a critical challenge in the MENA region, where the SME financing gap is estimated at around $180 billion, as reported by the International Finance Corporation. 

The company’s strategy has resulted in a remarkable growth trajectory, doubling its quarter-on-quarter originations and disbursements over the past two years, all while building a robust network of merchants in Egypt and the UAE.

As FlapKap continues to expand its reach and impact, it is poised to play a pivotal role in transforming the financial landscape for SMEs in the MENA region, helping to foster growth and innovation in a sector that is vital to the economy. 

With the latest funding boost, FlapKap is set to embark on a new chapter of growth, driving financial inclusion and enabling entrepreneurs in the MENA region to realize their ambitions.

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