Egypt-Born FlapKap Raises $34M for SME Financing Across MENA Region
TLDR
- FlapKap, a fintech platform from Egypt, raises $34 million in pre-Series A funding, total funding now at $37.6 million
- BECO Capital leads funding round with investments from Pact VC, A15, Nclude, QED Investors, and debt financing from Channel Capital
- FlapKap focuses on revenue-based and embedded financing for SMEs in e-commerce, retail, and restaurant sectors, using data-driven approach to streamline loan approval and expand services in MENA and GCC regions
FlapKap, a fintech platform born in Egypt and headquartered in Abu Dhabi, has secured $34 million in a pre-Series A funding round, bringing its total funding to $37.6 million. The round, led by BECO Capital, included new investment from Pact VC and follow-on support from A15, Nclude, QED Investors, and debt financing from Channel Capital.
Co-founded in 2022, FlapKap provides revenue-based and embedded financing solutions, particularly for SMEs in the e-commerce, retail, and restaurant sectors. The platform uses a data-driven approach, leveraging data sources from e-commerce platforms, social media, and payment gateways to streamline loan approval.
The funds will be used to scale FlapKap's SME financing services across the Middle East, North Africa (MENA), and the Gulf Cooperation Council (GCC) region. Part of the funding will also go toward enhancing the platform’s technology infrastructure and launching trade finance products specifically designed for B2B businesses.
Key Takeaways
FlapKap's $34 million funding round marks a significant step toward addressing the $180 billion SME financing gap in the MENA region. More so, as the e-commerce industry in the MENA region grows, FlapKap’s market opportunity is substantial. In 2017, the market was worth $8.4 billion, with an annual growth of 25% since 2014, and was predicted to reach $28.5 billion by 2022. With the accelerated adoption of e-commerce induced by the COVID-19 pandemic, these figures are bound to have increased substantially.
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