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UAE-based FlapKap raises USD 34 mln pre-series A

Wednesday 11 September 2024 09:16 CET | News

UAE-based fintech FlapKap has secured USD 34 million in pre-series A to optimise its tech infrastructure and expand across the GCC.

 

FlapKap was founded in 2002 and provides revenue-based and embedded financing solutions to help SMEs — especially those in ecommerce, retail, and restaurant sectors — scale their inventory and digital ads through instant funding, with the flexibility to pay later.

Part of the funding will also go towards optimising the fintech’s technology infrastructure to launch trade finance products designed specifically for B2B businesses. Company officials stated that this investment will also support their continued growth in the UAE and Egypt and further their expansion into the rest of the GCC.

FlapKap has bagged in USD 34 million in pre-series A funding to improve financing for SMEs across the GCC.

Augmenting B2B lending with AI and Open Banking

The fintech addresses several financial challenges for B2B businesses, most of which have limited access to traditional bank loans or venture capital, by streamlining the loan approval process. The platform’s data-driven approach integrates unconventional data sources from ecommerce sites, social media, payment gateways, and bank accounts to assess applicants. Moreover, the platform uses AI-powered models and Open Banking to provide accurate underwriting while lowering operating costs.

The UAE-based fintech, which has expanded its services to support a broader range of online and offline SMEs, claims that it can evaluate, approve, and provide prospective companies with offers in less than 48 hours after they sign up.

Bridging the SME financing gap in MENA

SMEs represent up to 90% of all businesses in most MENA countries, yet many struggle to secure the financial support needed to grow. FlapKap addresses this by automating the lending process.

The fintech aims to continue to address a major challenge in the MENA region, where the SME financing gap is estimated at USD 180 billion, per the International Finance Corporation. So far, the platform says it has doubled quarter-on-quarter originations and disbursements since 2022 while building a solid network of merchants across Egypt and the UAE.

Source: Link


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Keywords: funding, SMEs, lending, financing , expansion
Categories: Banking & Fintech
Companies: FlapKap
Countries: Middle East
This article is part of category

Banking & Fintech

FlapKap

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