Tuesday, June 25, 2024

FlapKap raises $3.6 million in seed funding to provide business financing for eCommerce and SaaS businesses in MENA

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The news

  • FlapKap, an Egyptian startup launched in 2022, has raised $3.6 million in seed funding.
  • The startup provides business financing for eCommerce and SaaS businesses in the Middle East and North Africa and raised its recent round of funding from QED, Nclude, A15, and Outliers.
  • Since launching, the startup has reportedly grown 300% quarter over quarter, while helping users generate over 80% increase in revenue and 70% in net profits. 

As the CEO of Kijamii, a digital advertising agency, Ahmad Coucha discovered that small businesses like his often had to wait up to 120 days before receiving payment for their services. With few options to finance their businesses as they waited, these businesses could not take advantage of increased demand for their services.

While spending time in the United States, Coucha discovered that a few companies helped small businesses access funding. In response, he launched FlapKap with Khaled Nassef to provide financing for small eCommerce brands in the MENA region. The startup has announced a $3.6 million investment from QED, Nclude, A15, and Outliers, adding to the $1.2 million it announced in March 2022.

Gbenga Ajayi, a QED partner, commented on his firm’s investment in FlapKap, stating, “Having invested and worked with similar companies to FlapKap across other regions such as Europe and Latin America, we are confident this team can attain similar success.”

FlapKap provides financing for eCommerce businesses, and in return, they repay a percentage of their revenues for the duration of the loan. Although the startup focuses on serving SaaS and eCommerce businesses, the latter constitutes the bulk of its customer base, and Coucha explains why that is the case. 

“SaaS is still growing in its early stage in the Middle East, but it’s not yet sizable. On the other hand, e-commerce is booming in all parts of the world and is underserved by the current finance infrastructure in the Middle East and Africa.”

Following this round, the startup intends to grow its operations in Egypt, UAE, and Saudi Arabia. It also plans to cement its position as a leading provider of revenue-based financing in the region.

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