FlapKap, an Abu Dhabi-based fintech company, has successfully raised $34 million in its latest pre-Series A funding round. This investment, which combines both debt and equity financing, marks a significant milestone for the company as it continues to expand its operations and enhance its offerings. With this new capital infusion, FlapKap aims to strengthen its position in the SME financing sector across the UAE, GCC, and MENA regions.

Funding Round Details

The recent funding round was led by BECO Capital, with substantial contributions from Pact VC, as well as follow-on investments from existing backers A15, Nclude, and QED Investors. Additionally, Channel Capital provided debt financing, bringing FlapKap's total funding to $37.6 million. This diverse financial backing underscores the confidence investors have in FlapKap's potential to revolutionize SME financing.

Expansion and Strategic Goals

The new funds will be allocated towards expanding FlapKap’s capabilities and broadening its reach within the UAE and GCC markets. The company plans to leverage this investment to bolster its technology infrastructure, enabling the launch of new trade finance products tailored specifically for B2B businesses. By enhancing its technological base, FlapKap aims to support small and medium-sized enterprises (SMEs) more effectively, addressing their financing needs and accelerating their growth.

Technological Advancements and Services

Founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap provides revenue-based and embedded financing solutions designed to help SMEs, particularly those in e-commerce, retail, and the restaurant sector. The platform simplifies the funding process by using data-driven models and AI-powered underwriting to offer rapid financing solutions. FlapKap’s approach includes integrating unconventional data sources from e-commerce platforms, social media, and payment gateways to assess applicants, enabling quicker approvals and more accurate risk assessments.

Addressing the SME Financing Gap

The Middle East and North Africa (MENA) region faces a substantial financing gap for small and medium-sized enterprises (SMEs), estimated between $180 billion and $240 billion. FlapKap's mission is to bridge this gap by providing accessible and flexible financial solutions. The company's innovative approach not only addresses the traditional barriers to SME financing but also adapts to the evolving needs of businesses in the region.

FlapKap's successful $34 million funding round marks a pivotal moment for the fintech company as it continues to drive innovation in SME financing. With support from a strong network of investors, FlapKap is well-positioned to expand its services and make a significant impact across the UAE, GCC, and MENA regions. The new capital will enable FlapKap to enhance its technological infrastructure, launch new financial products, and support the growth of SMEs, ultimately contributing to a more dynamic and accessible financial landscape.