FlapKap, the Egypt-born, and Abu Dhabi-based fintech platform, has raised $34 million in a pre-Series A funding round, bringing its total funding to $37.6 million. The round, which combines debt and equity financing, was led by BECO Capital with significant new investment from Pact VC. Follow-on contributions came from A15, Nclude, and QED Investors, alongside debt financing from Channel Capital. Founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers revenue-based and embedded financing solutions designed to help small and medium-sized enterprises (SMEs) scale their operations. The platform provides instant funding to businesses, particularly in eCommerce, retail, and the restaurant sector, allowing them to manage inventory and digital advertising expenses with the flexibility to repay later. The new investment will enable FlapKap to expand its SME financing services throughout the Middle East, North Africa, and the Gulf Cooperation Council (GCC) regions. Additionally, part of the funds will be allocated to enhancing the company's technology infrastructure to launch trade finance products aimed at B2B businesses. FlapKap’s platform utilizes AI-driven models and open banking to simplify and expedite the loan approval process. By integrating unconventional data sources from eCommerce sites, social media, payment gateways, and bank accounts, the company can assess applicants efficiently, providing offers within 48 hours of sign-up. Addressing the significant SME financing gap in the MENA region—estimated at $180 billion by the International Finance Corporation—FlapKap’s automated lending process is positioned to meet a crucial market need. With SMEs constituting up to 90% of businesses in many MENA countries, the fintech aims to bridge this gap and support growth in the UAE, Egypt, and beyond. FlapKap reports that it has doubled its quarter-on-quarter originations and disbursements over the past two years, establishing a strong network of merchants across Egypt and the UAE.
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