UAE-based fintech company FlapKap has secured $34 million in a pre-Series A funding round, combining both debt and equity financing. The round was led by BECO Capital and featured new investments from Pact VC, with additional contributions from A15, Nclude, QED Investors, and debt financing provided by Channel Capital.
FlapKap, founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, offers revenue-based and embedded financing solutions designed to help small and medium-sized enterprises (SMEs) grow their inventory and boost digital ad spending through fast funding with flexible payment options.
The fintech aims to use this new funding to expand its SME financing services throughout the Gulf Cooperation Council (GCC) region and the broader Middle East and North Africa (MENA). Part of the investment will also be allocated to enhancing the company’s technology infrastructure to launch trade finance products tailored for B2B companies.
FlapKap had previously raised $3.6 million in a seed round in 2022, bringing its total funding to $37.6 million. The platform’s AI-powered models and open banking technology streamline the underwriting process, allowing SMEs—particularly those in e-commerce, retail, and the restaurant industry—to receive funding offers within 48 hours of signing up.
CEO and co-founder Ahmad Coucha noted that the data-driven approach leverages unconventional data sources, such as e-commerce sites, social media, payment gateways, and bank accounts, to assess applicants and support SMEs that often face challenges in securing traditional bank loans or venture capital.
FlapKap has seen rapid growth, with originations and disbursements doubling quarter-on-quarter over the past two years. The fintech’s mission is to help address the $180 billion SME financing gap in the MENA region, as estimated by the International Finance Corporation. With its services expanding across Egypt and the UAE, FlapKap is building a strong network of merchants and supporting a wide range of online and offline SMEs.
Discover the State of Funding in MENA – 2019 to 2023 :
https://assiyaq.com/the-state-of-startup-funding-in-mena-2024-report/ of this month is taking you through the ups and downs of MENA’s startup funding over the last 5 years. If you’re a startup founder, an investor or an ecosystem builder, this is your chance to learn from the past, spot the trends, and write your own success story.
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