FlapKap Secures $34 Million in Pre-Series A Funding to Expand SME Financing Across MENA

FlapKap, an Abu Dhabi-based fintech startup, has raised $34 million in a pre-Series A funding round. The round included both debt and equity financing, with leading contributions from BECO Capital, Pact VC, and follow-on investments from A15, Nclude, QED Investors, and Channel Capital. This brings FlapKap’s total funding to $37.6 million. The investment will drive the expansion of FlapKap’s SME financing services across the Middle East, North Africa (MENA), and the Gulf Cooperation Council (GCC) region.

The fintech platform, co-founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, specializes in providing revenue-based and embedded financing to SMEs, particularly those in eCommerce, retail, and the restaurant industry. These sectors often face challenges accessing traditional loans or venture capital. By offering flexible financing solutions, FlapKap helps businesses grow by funding inventory and digital ad campaigns with the option to repay later.

With the new funding, FlapKap plans to enhance its technological infrastructure and launch new trade finance products tailored to B2B businesses. The platform’s AI-powered models and integration of unconventional data sources—such as eCommerce sites, social media, and payment gateways—simplify the underwriting process and reduce operating costs. SMEs that sign up can receive loan offers within 48 hours, providing a fast and efficient solution to their financing needs.

FlapKap’s efforts are particularly significant in the MENA region, where SMEs make up 80-90% of all businesses but face a $180 billion financing gap, according to the International Finance Corporation. The fintech aims to address this gap by automating the lending process and expanding its services across Egypt, the UAE, and the wider GCC.

The latest round of funding marks a critical step in FlapKap’s mission to bridge the SME financing gap in the region, empowering small and medium-sized enterprises to unlock their full growth potential.