UAE-based fintech startup FlapKap has secured US$37.6 million in pre-Series A funding, led by BECO Capital with significant participation from Pact VC, A15, Nclude, QED Investors, and Channel Capital. The funding will enable FlapKap to enhance its operations in the UAE and GCC, expand its SME lending capabilities, and develop new trade finance products for B2B businesses.
Founded in 2019, FlapKap provides instant funding solutions to e-commerce businesses and other consumer-facing industries. Leveraging its AI-powered credit model and unconventional data sources, the company offers rapid funding decisions and competitive interest rates. By integrating with e-commerce platforms and social media accounts, FlapKap can deliver funding offers to merchants within 48 hours.
The new funding will help FlapKap address the estimated US$180 billion SME financing gap in the MENA region. Traditional financial institutions have often overlooked this segment due to insufficient infrastructure, limited data, and perceived risks. FlapKap’s innovative solutions have already doubled its quarterly originations and disbursements over the past two years, strengthening its merchant network across Egypt and the UAE.
Ahmad Coucha, CEO and Co-founder of FlapKap, said, “This investment will fuel our growth in the UAE and Egypt, support our expansion throughout the GCC, and provide valuable insights from our esteemed investors.”
Walter Gontarek, CEO of Channel Capital, praised FlapKap’s achievements, saying, “Their leadership team has effectively identified opportunities in this vast market, demonstrating how data and technology can drive significant innovation.”
Karim Abadir, Principal at BECO, added, “We are thrilled to support FlapKap as they address the SME financing gap in MENA with their cutting-edge, data-driven approach.”
Reem Wyndham, General and Founding Partner at Pact VC, also expressed enthusiasm, saying, “FlapKap’s innovative model is a game-changer for SME financing.”
