UAE-based fintech platform FlapKap has successfully raised $34 million in a funding round combining debt and equity, bringing its total funding to $37.6 million.
The fundraising round was led by BECO Capital, with participation from new investor Pact VC. Existing backers, including A15, Nclude, and QED Investors, also joined the round, alongside debt financing provided by Channel Capital. The funds will be used to expand FlapKap’s operations in the UAE and the wider GCC region, with a focus on empowering small and medium-sized enterprises (SMEs) to unlock their growth potential.
Expansion Plans and Product Development
FlapKap, originally founded in Egypt, plans to deploy the new capital to enhance its technology infrastructure, enabling the launch of trade finance products tailored for B2B businesses. This marks a strategic shift for the fintech, which aims to provide comprehensive revenue-based financing solutions for a broader range of SMEs. The company’s expansion in the UAE and GCC will allow it to support more businesses in consumer-facing industries, including retail, e-commerce, and restaurants, by offering fast, flexible funding solutions and customized repayment terms.
Helping SMEs Overcome Barriers
Established in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap initially targeted businesses with limited access to traditional bank loans or venture capital. Through the use of data and technology, the platform has streamlined the underwriting process and expanded its services to both online and offline SMEs. FlapKap assesses businesses across multiple platforms such as e-commerce, advertising, online reviews, payment gateways, PoS systems, bank accounts, and ERP platforms, offering tailored financial solutions based on comprehensive risk analysis.
“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,” said FlapKap CEO and Co-founder Ahmad Coucha.
Addressing the SME Finance Gap in MENA
The financing gap for micro, small, and medium-sized enterprises (MSMEs) in the Middle East and North Africa (MENA) region remains a significant challenge. According to the International Finance Corporation (IFC), MSMEs account for 80%-90% of businesses in many MENA countries, yet nearly 63% of them do not have access to necessary financing. The IFC estimates the total MSME finance gap in the region to be between $210 billion and $240 billion, with the formal MSME finance gap at around $160 billion to $180 billion.
FlapKap’s mission aligns with addressing this critical issue by providing alternative financing solutions for SMEs that struggle to secure funding through traditional channels.
Growing Momentum in the Region
FlapKap’s funding success follows several other notable investments in the MENA region’s fintech and tech ecosystems. In September 2024, Saudi-based automation startup Reachware raised $3 million in seed funding, led by Sadu Capital. Additionally, UAE-based payroll platform Cercli secured $4 million in seed funding, and payment solutions provider Ziina raised $22 million in a Series A round, led by US-based Altos Ventures.
As FlapKap continues to innovate and expand, it is poised to become a key player in bridging the financing gap for SMEs across the MENA region, driving growth and financial inclusion for underserved businesses.
