FlapKap Secures $34 Million in Pre-Series A Round: A Game Changer for SME Financing in MENA

Traditional financial institutions often overlook a staggering $180 billion financing gap for small and medium enterprises (SMEs) in the MENA region. Hub71 startup, FlapKap, addresses this with its revenue-based and embedded financing solutions to help e-commerce, retail, and restaurant SMEs scale their operations with instant funding and the flexibility to pay later.

Recently, FlapKap secured $34 million in a pre-Series A funding round led by BECO Capital and supported by Pact VC. With this latest funding the company aims to enhance its technology infrastructure and expand its reach to empower SMEs in MENA that have long struggled to secure financial support.

What Sets FlapKap apart?

FlapKap uses a data-driven approach, leveraging unconventional data sources and open banking to offer AI-powered credit models. This allows for accurate risk assessment and reduces costs with businesses receiving funding approvals in less than 48 hours. This is a stark contrast to traditional banks, which can take weeks or even months to process loan applications.

Empowering SMEs Across MENA

In the MENA region, 19-23 million micro, small and medium enterprises (MSMEs) account for up to 80 to 90% of all enterprises. Yet, they often lack access to the financial resources necessary to thrive. FlapKap's innovative financing helps bridge this gap, enabling companies to scale and grow.

Ahmad Coucha, FlapKap's CEO, emphasized the importance of this funding round, stating: "By leveraging data and technology, we're breaking down the barriers that SMEs face in accessing financial services. This sentiment resonates deeply in a region where many viable businesses have been left without the necessary support."

What's Next for FlapKap?

With this new capital, FlapKap plans to:

• Expand its offerings to launch trade finance products tailored specifically for B2B businesses.
• Invest in technology to streamline operations and enhance customer experience.
• Scale operations in the UAE and Egypt, with plans to enter other GCC markets.

A Bright Future for SMEs

FlapKap's funding represents more than a financial milestone, it's a step toward creating a more inclusive financial landscape for SMEs in MENA. As a part of Hub71, FlapKap is well-positioned to leverage Abu Dhabi's vibrant tech ecosystem, paving the way for a more inclusive financial landscape.