FlapKap, a fintech platform based in Abu Dhabi, has secured $34 million in pre-Series A funding, bringing its total funding to $37.6 million. The round was led by BECO Capital with significant participation from Pact VC, A15, Nclude, QED Investors, and Channel Capital.
The funding will be used to expand FlapKap’s small and medium enterprise (SME) financing services across the Middle East and North Africa (MENA) and the Gulf Cooperation Council (GCC) regions. Additionally, the company will invest in optimising its technology infrastructure to launch trade finance products specifically tailored for B2B businesses.
Founded in 2022, FlapKap provides revenue-based and embedded financing solutions to help SMEs, particularly those in eCommerce, retail, and restaurant sectors, scale their inventory and digital ads through instant funding with flexible payment terms. By streamlining the loan approval process, FlapKap addresses the limited access to traditional bank loans or venture capital faced by many SMEs in the region.
Ahmad Coucha, CEO and Co-founder of FlapKap, expressed his excitement about the investment, stating, “The growth in data has made it easier than ever to support SMEs. This funding will fuel our expansion and further our mission to empower businesses in the MENA region.”
FlapKap’s data-driven approach leverages unconventional data sources from eCommerce sites, social media, payment gateways, and bank accounts to assess applicants. Utilising AI-powered models and open banking, the platform provides accurate underwriting while reducing operating costs.
The fintech platform claims to evaluate, approve, and provide offers to prospective companies within 48 hours of sign-up, demonstrating its efficiency and commitment to serving SMEs.
With the SME financing gap in the MENA region estimated at $180 billion, FlapKap aims to continue addressing this critical challenge. The company has doubled its quarter-on-quarter originations and disbursements over the past two years, while building a strong network of merchants in Egypt and the UAE.
