FlapKap has announced the close of a $34 million new debt and equity funding. FlapKap is an Abu Dhabi-based fintech that provides revenue-based and embedded financing solutions in the MENA region.
FlapKap was launched to help e-commerce businesses and other consumer-facing industries like retail and restaurants scale their inventory and digital ads through instant funding, with the flexibility to pay later. The company focused on supporting these businesses that had limited access to traditional bank loans or venture capital by streamlining the process of underwriting and has since expanded its services to support a broader range of SMEs. Flapkap could easily evaluate and approve prospective companies by connecting their platform to the businesses’ e-commerce sites and social media accounts, providing the merchants with an offer less than 48 hours after they sign up.
This latest funding round was led by BECO Capital with participation of Pact VC, A15, Nclude, and QED Investors and debt financing from Channel Capital. This capital injection brings FlapKap’s total funding to $37.6M.
FlapKap plans to use the funding to expand its capabilities in the UAE and GCC region. It plans to deploy more capital to empower SMEs in the space and helping them maximise their growth potential. The company will also enhance its technology infrastructure to introduce trade finance products made exclusively for B2B businesses.
What They Said
Speaking on the round, Ahmad Coucha, FlapKap CEO and Co-founder said, “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. We’re now able to assess risk more accurately and reduce underwriting costs, addressing the two biggest obstacles faced by incumbent financial institutions. This investment will support our continued growth in the UAE and Egypt and further our expansion into the rest of the GCC, and help us gain valuable insights from our high-calibre investment partners.”
Walter Gontarek, CEO at Channel Capital added, ‘We’re impressed with FlapKap’s operations across the MENA region and are excited to partner with them in this round. Their experienced leadership team has identified major opportunities in this multi-billion-dollar market, and their impact on SME growth is commendable. In just two years, the company has grown rapidly, exemplifying how data and technology can drive market-creating innovation’
Karim Abadir, Principal at BECO commented, ‘“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. We believe in their vision and are excited to partner with them as they scale their impact across the region, empowering more SMEs to reach their full potential..’
Reem Wyndham, General and Founding Partner at Pact VC shared, ‘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’re excited to support their success.’
Read: Intron Health Closes a $1.6 Million Pre-seed Funding Round
