FlapKap, a fintech platform based in Abu Dhabi and Egypt, has raised $34 million in a pre-Series A funding round. The funding round, nearly two years after the company secured $3.6 million in seed funding, brings FlapKap’s total funding to $37.6 million.
The round was led by BECO Capital, with significant new investments from Pact VC and follow-on contributions from A15, Nclude, and QED Investors. Channel Capital provided debt financing.
The company plans to use the funds to expand its SME financing services across the Middle East, North Africa (MENA), and the Gulf Cooperation Council (GCC) regions.
A portion of the investment will also be used to enhance the fintech’s technology infrastructure. This includes launching new trade finance products tailored for B2B businesses.
FlapKap’s Technology Targets Financing Challenges
Founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap provides revenue-based and embedded financing solutions.
The platform helps SMEs, especially in eCommerce, retail, and restaurant sectors, scale their inventory and digital advertising through instant funding with flexible repayment options.
FlapKap addresses significant financial challenges for SMEs, many of which have limited access to traditional bank loans or venture capital.
The platform streamlines the loan approval process using data-driven insights. FlapKap’s CEO and co-founder, Ahmad Coucha, emphasized the platform’s commitment to supporting SMEs with easy access to financing.
“The growth in data has made it easier than ever to support SMEs,” Coucha said.
FlapKap’s data-driven approach integrates unconventional data sources from eCommerce sites, social media, payment gateways, and bank accounts.
This helps the platform accurately assess applicants and lower operating costs using AI-powered models and open banking.
Also Read: Six Start-Ups Win at AfricArena Nairobi Climate Tech Summit
Expanding Reach in MENA and GCC
The fintech claims it can evaluate, approve, and offer financing to businesses within 48 hours of signing up. This fast and efficient process helps SMEs that make up 90% of businesses in most MENA countries. Many of these businesses struggle to secure the financial support they need to grow.
FlapKap aims to bridge the SME financing gap, which the International Finance Corporation estimates at $180 billion in the MENA region.
The fintech has doubled quarter-on-quarter originations and disbursements over the past two years, building a solid merchant network in Egypt and the UAE. The company’s expansion will focus on the UAE, Egypt, and the broader GCC region.
FlapKap’s growth reflects a broader trend in Africa’s rapidly evolving fintech landscape, where innovative solutions are driving significant change.