FlapKap, a leading fintech platform based in Abu Dhabi, has raised $34 million in new debt and equity funding to accelerate its mission of supporting small and medium enterprises (SMEs) in the Middle East and North Africa (MENA) region. This pre-Series A funding round was led by BECO Capital and included significant new investment from Pact VC, alongside follow-on investments from A15, Nclude, and QED Investors. Debt financing was provided by Channel Capital, bringing FlapKap’s total funding to $37.6 million.
Expanding SME Support Across MENA
With this capital injection, FlapKap plans to enhance its presence in the UAE and the broader Gulf Cooperation Council (GCC) region. The company, which already serves e-commerce, retail, and restaurant businesses, will expand its services to a wider range of SMEs, providing instant funding solutions with flexible repayment options. FlapKap’s immediate goal is to deploy more capital to empower SMEs while also improving its technological infrastructure to launch trade finance products designed for B2B businesses.
FlapKap’s Founders and Vision
FlapKap was founded by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani. Initially launched in Egypt and headquartered at Abu Dhabi’s Hub71, the company focuses on providing fast, data-driven financing solutions to businesses that often struggle to access traditional bank loans. By integrating with businesses’ e-commerce sites and social media accounts, FlapKap evaluates companies’ financial health and potential, delivering financing offers within 48 hours.
The company’s streamlined underwriting process relies on unconventional data sources, including open banking and AI-powered credit models, which reduce operational costs and allow for more precise risk assessments. This approach automates much of the lending process, making it accessible to a broader range of businesses across both online and offline platforms.
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Addressing the SME Financing Gap
According to the International Finance Corporation, the SME financing gap in the MENA region stands at an estimated $180 billion. SMEs, including formal and informal enterprises, make up between 80-90% of all businesses in most MENA countries. However, traditional financial institutions have largely overlooked this segment due to inadequate infrastructure, limited access to data, and perceived risks. This has left millions of viable businesses without the financial support needed to scale their operations.
FlapKap aims to fill this gap, focusing on businesses with limited access to capital. The company’s data-driven approach evaluates multiple platforms, including payment gateways, point-of-sale systems, enterprise resource planning (ERP) platforms, and advertising accounts. This comprehensive assessment enables FlapKap to offer tailored financial solutions that can support both digital and brick-and-mortar businesses.
Impact and Future Plans
FlapKap’s entry into this underserved market has led to rapid growth, with the company doubling its quarterly originations and disbursements over the past two years. With a strong network of merchants in Egypt and the UAE, the fintech platform is well-positioned to expand further across the GCC region.
CEO and co-founder Ahmad Coucha emphasized the importance of data and technology in FlapKap’s mission: “The growth in 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’re breaking down the barriers that SMEs face in accessing financial services.”
This funding round will enable FlapKap to continue its mission of providing innovative, data-driven financial solutions to underserved businesses in MENA. With a rapidly growing market for SME financing and a clear vision for the future, FlapKap is set to make a lasting impact on the region’s business landscape.
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Investor Confidence in FlapKap’s Vision
FlapKap’s innovative approach to SME financing has garnered strong support from investors. Walter Gontarek, CEO at Channel Capital, praised FlapKap’s impact: “We’re impressed with FlapKap’s operations across the MENA region and are excited to partner with them. Their experienced leadership team has identified major opportunities in this multi-billion-dollar market, and their impact on SME growth is commendable.”
Similarly, Karim Abadir, Principal at BECO, expressed confidence in the company’s trajectory: “We’re thrilled to back the FlapKap team as they continue to bridge the SME financing gap in the MENA region with their innovative, data-driven approach. Their commitment to leveraging technology to provide tailored financial solutions is transforming how underserved businesses access the support they need to grow.”
A Bright Future for SMEs in MENA
FlapKap’s rapid rise reflects the immense potential of SMEs across the MENA region. With its innovative technology, flexible financing options, and data-driven underwriting, the company is well-positioned to continue supporting SMEs as they scale their operations and drive economic growth in the region. As FlapKap expands its reach, more businesses will have the opportunity to access the financial tools they need to succeed in a competitive market.