Based in Abu Dhabi FlapKapa leading fintech platform providing revenue-driven and integrated financing solutions in the MENA region, has raised $34 million in new debt and equity financing.
Details
The funding round was led by BECO Capital and welcomed significant new investment from VC agreement. The round also included follow-on investment from A15, Incland QED Investors and debt financing from Channel capital.
This capital injection brings FlapKap’s total funding to $37.6 million.
What will happen next?
With this pre-Series A funding, FlapKap will expand its capabilities in the UAE and the GCC region, deploying more capital to empower SMEs in the space and helping them maximize their growth potential. The company will also strengthen its technology infrastructure to launch trade finance products exclusively designed for B2B businesses.
About FlapKap
Led by Ahmad Coucha, Khaled Nassef, Sheriff Bihara, and Kunal HarisinghaniEgyptian-born, based in Abu Dhabi Hub71, FlapKap was launched to help e-commerce businesses and other consumer-facing industries, such as retail and restaurants, scale their inventory and digital advertising through direct funding, with the flexibility to pay later.
The company focused on supporting those businesses that had limited access to traditional bank loans or venture capital by simplifying the underwriting process and has since expanded its services to support a wider range of SMEs. Flapkap could easily evaluate and approve prospective companies by connecting their platform to businesses’ e-commerce sites and social media accounts, providing merchants with an offer less than 48 hours after signing up.
Digging deeper
FlapKap has now expanded its funding to serve a wide range of online and offline businesses. Leveraging unconventional data sources, the emergence of open banking, an AI-powered credit model and the growing digital footprints of SMEs, FlapKap has developed a data-driven approach that automates the lending process and reduces operational costs.
The platform integrates with verified third-party data to provide accurate business underwriting. FlapKap evaluates businesses across multiple platforms including e-commerce, advertising, online reviews, payment gateways, PoS systems, bank accounts and Enterprise Resource Planning (ERP) platforms.
By The Numbers
With the new funding, FlapKap will continue its mission to address MENA’s $180 billion SME financing gapas estimated by the International Finance Corporation. With one an estimated 19-23 million SMEs in the MENA region, Including both formal and informal, these businesses make up 80-90% of all businesses in most MENA countries.
Because this matters
Traditional financial institutions often overlook this SME segment due to poor infrastructure, limited data and perceived risks. This oversight has left millions of viable businesses without the support they need to scale their operations and boost revenue. FlapKap’s entry into this underserved and untapped market has already resulted in doubling its quarterly commissions and disbursements over the past two years, while building a strong dealer network across Egypt and the UAE.
What They Say
Speaking of round, Ahmad Coucha, The CEO and co-founder of FlapKap said, “The growth of data has made it easier than ever to support SMEs, and at FlapKap, we’re rising to the occasion. By leveraging data and technology, we break down the barriers SMEs face in accessing financial services. We are now able to assess risk more accurately and reduce the cost of underwriting, addressing the two biggest obstacles facing incumbent financial institutions. This investment will support our continued growth in the UAE and Egypt and continue our expansion into the rest of the GCC and help us gain valuable insights from our high-level investment partners.“
Walter GontarekCEO at Channel Capital added, “We are impressed with FlapKap’s business across the MENA region and are excited to partner with them in this round. Their experienced leadership team has identified significant opportunities in this multi-billion dollar market and their impact on SME growth is commendable. In just two years, the company has grown rapidly, proving how data and technology can drive market-making innovation“.
Karim Abadirthe director of BECO commented, “”We are excited to support the FlapKap team as they continue to bridge the SME funding gap in the MENA region with their innovative, data-driven approach. Their commitment to leveraging technology to deliver personalized financial solutions is transforming how underserved businesses access the support they need to grow. We believe in their vision and are excited to partner with them as they scale their impact across the region, enabling more SMEs to reach their full potential.”
Reem WyndhamGeneral and Founding Partner at Pact VC share, ‘We were impressed by Ahmad and his team’s clear vision and execution. FlapKap’s innovative model is a game changer in SME financing and we are excited to support their success.“
Stay up to date with news and other items on our WhatsApp Community Page, Twitter/Xand subscribe to our weekly newsletter to make sure you don’t miss any news.
Related
