UAE-based fintech FlapKap has successfully raised $34 million in a pre-Series A round, combining both debt and equity financing. BECO Capital led the round, while Pact VC, A15, Nclude, QED Investors, and Channel Capital also contributed. This funding marks a major milestone in FlapKap’s growth journey.
Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers financial solutions designed for small and medium enterprises (SMEs). The company helps SMEs boost their inventory and digital advertising spend with quick access to cash, which they can repay later. Consequently, these businesses can scale more effectively.
Rapid Growth and Expansion Plans
Previously, FlapKap raised $3.6 million in seed funding in 2022, increasing the total funding to $37.6 million. With this new investment, FlapKap plans to extend its services across the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) regions. Additionally, they will enhance their technology infrastructure to launch new trade finance products for B2B businesses. This strategic move will strengthen FlapKap’s position in the fintech industry.
FlapKap’s Innovative Approach
FlapKap distinguishes itself through its data-driven approach in evaluating loan applicants. The platform integrates data from eCommerce platforms, social media, and bank accounts to assess businesses. Additionally, AI-powered models and open banking streamline the process and cut operational costs, enabling FlapKap to deliver loan offers within 48 hours. This approach not only accelerates the process but also provides SMEs with flexible and accessible financing options.
Addressing the SME Financing Gap
SMEs represent 90% of businesses in the MENA region, yet many face difficulties in securing funding. FlapKap addresses this issue by automating the lending process. According to the International Finance Corporation, the SME financing gap in MENA totals $180 billion. By bridging this gap, FlapKap ensures that more SMEs can access the funds they need to grow.
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