Egypt’s FlapKap, has announced its launch and successful completion of a $1.2 million fundraise led by A15, a top MENA venture capital firm, to fuel its operations in the UAE and Egypt, acquire more merchants and launch in Saudi Arabia and the wider MEA expansion.
FlapKap, a mix of Clearco and Wayflyer and the first of its kind in the region, offers online businesses AI-based insight to help them optimize their advertising spend and maximize profits. Then, it offers these businesses revenue-based flexible payment terms, on that advertising spend, to ensure sustainable growth without cash constraints.
According to Ahmad Coucha, co-founder and CEO of FlapKap: “We are delighted to announce our launch and fundraise, and have the backing of such an esteemed investor as A15 – one of the leading venture capital firms in the MENA region. It is testament to our business model and validates our strategy. We have taken a proven international business model, and adapted it for the Middle East. Our solution empowers SMEs and startups to grow sustainably, without losing equity, and to help manage their cashflows. With a first mover advantage, and a huge market opportunity, we are excited to extend the growth opportunities we have unlocked for our early clients to the whole region.”
FlapKap’s management team has a proven entrepreneurial track record in e-commerce, media and digital banking. Co-founder/CEO is Ahmad Coucha – the co-founder of MENA’s top advertising agency Kijamii and a Harvard graduate. The founding team also includes Khaled Nassef, co-founder/CTO and formerly of German neobank N26 and Amazon; Amr Gamal, COO, former McKinsey and P&G; and Sherif Bichara, FinOps Manager, formerly at Helios and Lazard.
FlapKap’s market opportunity is substantial. In 2017, Bain & Company reported the wider MENA e-commerce market was worth $8.4 billion, with an annual growth of 25% since 2014, and predicted the market to reach $28.5 billion by 2022. FlapKap expects these figures to have increased substantially due to accelerated adoption catalyzed by the COVID-19 pandemic.
“A15 is proud to lead the fundraise for FlapKap and to back its CEO, Ahmed Coucha, for –our second venture together. FlapKap is not only a visionary company with an excellent business model, but it is creating real tangible value for the region by helping SMEs grow. It also has a first mover advantage in a significant market, all of which creates a very bright future.” said Karim Beshara, General Partner at A15.