FlapKap, a fintech platform with roots in Egypt and headquartered in Abu Dhabi, has raised $34 million in a pre-Series A funding round, two years after securing $3.6 million in seed funding. This brings the company’s total funding to $37.6 million. The round, consisting of both debt and equity financing, was led by BECO Capital and saw new investment from Pact VC, along with follow-on support from A15, Nclude, QED Investors, and Channel Capital.
FlapKap plans to use the new funds to expand its SME financing services across the Middle East, North Africa (MENA), and Gulf Cooperation Council (GCC) regions. A portion of the investment will also be used to enhance its technology infrastructure and introduce trade finance products tailored to B2B businesses.
FlapKap provides revenue-based and embedded financing solutions to help small and medium-sized enterprises (SMEs)—particularly in eCommerce, retail, and restaurants—scale their operations by offering instant funding with flexible payment options.
FlapKap uses AI-powered models and open banking technologies to streamline the loan approval process, tapping into non-traditional data sources such as eCommerce platforms, social media, and payment gateways to assess applicants. The platform claims it can provide offers to businesses within 48 hours of signup.
With SMEs representing up to 90% of businesses in MENA but often struggling to secure financing, FlapKap’s automated lending platform fills a critical gap. The company has doubled its originations and disbursements quarter-on-quarter and continues to expand its network of merchants across Egypt and the UAE, addressing a $180 billion SME financing gap in the region, as reported by the International Finance Corporation.
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