FlapKap, an Abu Dhabi fintech platform has today raised $34 million pre-Series A equity round led by BECO Capital with new investment from Pact VC and follow-on investment from A15, Nclude, and QED Investors. Debt financing was from Channel Capital bringing the firm’s total funding to $37.6M.
With this funding, FlapKap will expand in the UAE and GCC region and launch trade finance products exclusively designed for SMEs businesses that had limited access to traditional bank loans.
According to Ahmad Coucha, FlapKap CEO and Co-founder, “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.”
Led by Ahmad Coucha, Khaled Nassef, Sherif Bichara and Kunal Harisinghani, FlapKap aims 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.
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.
FlapKap has now broadened its financing reach to serve a diverse range of online and offline businesses. By leveraging unconventional data sources, the emergence of open banking, an AI powered credit model, and the growing digital footprints of SMEs, FlapKap has developed a data-driven approach that automates the lending process and reduces operational costs.
The platform integrates with third-party verified data to provide precise underwriting of businesses. FlapKap assesses businesses across multiple platforms, including e-commerce, advertising, online reviews, payment gateways, PoS systems, bank accounts, and Enterprise Resource Planning (ERP) platforms.
FlapKap’s entry into this underserved and untapped market has already resulted in the doubling of its quarterly originations and disbursements over the past two years, while building a strong network of merchants across Egypt and the UAE.
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..’