Will FlapKap’s Latest Funding Propel SME Growth Across MENA?
FlapKap, an Abu Dhabi-based fintech platform, just secured US$34 million in new funding, a mix of debt and equity. This funding round was led by BECO Capital, with new investment from Pact VC, along with follow-on investments from A15, Nclude, and QED Investors. They also got debt financing from Channel Capital, bringing FlapKap’s total funding to US$37.6 million.
This pre-Series A round is going to help FlapKap expand further into the UAE and the broader GCC region, where they plan to deploy more capital specifically to support SMEs, helping them grow and maximise their potential. They’re also working on enhancing their technology, particularly to launch trade finance products that cater to B2B businesses.
The company was originally founded by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, and started in Egypt before setting up its headquarters at Abu Dhabi’s Hub71. FlapKap’s main focus has been on providing financing for e-commerce businesses and other consumer-facing sectors like retail and restaurants, helping them scale inventory and digital advertising through instant funding that can be repaid later. This is especially beneficial for businesses that don’t have access to traditional bank loans or venture capital.
FlapKap has made the whole process of getting funds pretty simple. They connect their platform with businesses’ e-commerce sites and social media accounts, and within 48 hours of signing up, the businesses can get an offer. They’ve also broadened their reach to support a variety of both online and offline businesses, using unconventional data sources, AI-powered credit models, and the growing digital footprints of SMEs to streamline the lending process and reduce costs.
Their platform integrates with third-party verified data, so they can accurately underwrite businesses by analyzing data from sources like e-commerce platforms, advertising, online reviews, payment gateways, and even enterprise resource planning (ERP) systems. FlapKap’s automated, data-driven approach helps reduce the operational costs typically associated with lending.
In discussing the latest funding round, CEO Ahmad Coucha highlighted how data and technology are key in overcoming the challenges SMEs face when trying to access financial services. He emphasised that the new investment will help FlapKap expand its presence in the UAE, Egypt, and the wider GCC region. The company is targeting the US$180 billion SME financing gap in the MENA region, with millions of small and medium businesses being overlooked by traditional banks due to insufficient data or perceived risks.
Walter Gontarek, the CEO of Channel Capital, praised FlapKap for identifying huge opportunities in the MENA market, while Karim Abadir from BECO Capital expressed excitement over how FlapKap’s innovative, tech-driven approach is transforming SME financing. Reem Wyndham from Pact VC also shared that she was impressed with FlapKap’s vision and execution, calling their model a game-changer for SME financing.
