FlapKap Raises $34M Pre-Series A to Boost SME Financing in MENA

...Doubles Growth Over Two Years

Abu Dhabi-based fintech FlapKap has secured $34 million in debt and equity funding to expand its revenue-based and embedded financing services across the MENA region. The funding round, led by BECO Capital, included new investment from Pact VC and follow-on backing from A15, Nclude, QED Investors, and debt financing from Channel Capital, bringing FlapKap’s total funding to $37.6 million.

The pre-Series A round will fuel FlapKap's growth, allowing it to extend its presence in the UAE and GCC, while deploying more capital to empower SMEs in the region. The fintech also plans to upgrade its technology infrastructure and introduce trade finance products tailored for B2B businesses.

Co-founded by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap initially launched to support e-commerce and consumer-facing businesses like retail and restaurants, helping them scale through flexible funding. By connecting its platform to e-commerce sites and social media accounts, FlapKap can evaluate and approve funding offers within 48 hours.

Now, FlapKap has broadened its reach to serve a wider range of online and offline businesses. Through the use of AI-powered credit models, open banking, and a data-driven approach, the company automates the lending process and minimizes operational costs. The platform integrates with various data sources like payment gateways, ERP systems, and online reviews to provide precise underwriting and fast access to financing for SMEs.

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.”

With the new funding, FlapKap will continue its mission to address MENA's $180 billion SME financing gap, as estimated by the International Finance Corporation. With an estimated 19-23 million MSMEs in the MENA region, including both formal and informal, these enterprises make up 80-90% of all businesses across most MENA countries. Traditional financial institutions have often overlooked this MSME segment due to inadequate infrastructure, limited data, and perceived risks. This oversight has left millions of viable businesses without the required support to scale their operations and boost their revenues. 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.

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.’