FlapKap Raises $34 Million to Expand SME Financing Across MENA and GCC Regions
FlapKap, a fintech platform founded in Egypt and based in Abu Dhabi, has successfully raised $34 million in a pre-Series A funding round, nearly two years after securing $3.6 million in seed funding.
This brings the company’s total funding to $37.6 million.
The funding round was led by BECO Capital and included significant new investments from Pact VC, along with additional contributions from A15, Nclude, QED Investors, and debt financing from Channel Capital.
FlapKap plans to use the new funding to expand its financing services for small and medium-sized enterprises (SMEs) across the Middle East and North Africa (MENA) and the Gulf Cooperation Council (GCC) region.
A portion of the funds will also be allocated to enhancing the company’s technology infrastructure and launching trade finance products specifically tailored for B2B businesses.
Founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap provides revenue-based and embedded financing solutions to help SMEs, particularly in eCommerce, retail, and restaurant sectors, scale their inventory and digital advertising efforts through instant funding, with the flexibility to pay later.
FlapKap addresses several financial challenges faced by these businesses, many of which have limited access to traditional bank loans or venture capital, by streamlining the loan approval process.
Ahmad Coucha, CEO and co-founder of FlapKap, stated, “The growth in data has made it easier than ever to support SMEs.”
He added, “This investment will fuel our continued growth in the UAE and Egypt and support our expansion into the rest of the GCC.”
The platform uses a data-driven approach, integrating unconventional data sources such as eCommerce sites, social media, payment gateways, and bank accounts to evaluate applicants.
It also leverages AI-powered models and open banking to provide accurate underwriting while reducing operating costs.
FlapKap, which has expanded its services to support a broader range of online and offline SMEs, claims it can evaluate, approve, and provide offers to potential companies in less than 48 hours after they sign up.
SMEs represent up to 90% of all businesses in most MENA countries, yet many struggle to secure the financial support needed for growth.
The UAE-headquartered fintech addresses this challenge by automating the lending process.
FlapKap aims to continue addressing the significant SME financing gap in the MENA region, which is estimated at around $180 billion, according to the International Finance Corporation.
The platform reports it has doubled its quarterly loan originations and disbursements over the past two years while building a robust network of merchants across Egypt and the UAE
