- FlapKap, an Egyptian startup launched in 2022, raised $3.6 million in seed funding.
- The startup provides funding to e-commerce and SaaS businesses in the Middle East and North Africa and raised its recent funding round from QED, Nclude, A15 and Outliers.
- Since its launch, the startup is said to have grown 300% quarter-over-quarter, while helping users generate an increase of over 80% in revenue and 70% in net profit.
As CEO of Kijamii, a digital advertising agency, Ahmad Coucha discovered that small businesses like his often had to wait up to 120 days to receive payment for their services. With few options to fund their businesses while they waited, these companies couldn’t take advantage of the increased demand for their services.
While spending time in the United States, Coucha found a few companies helping small businesses access financing. In response, he launched FlapKap with Khaled Nassef to provide funding for small e-commerce brands in the MENA region. The startup announced a $3.6 million investment from QED, Nclude, A15 and Outliers, adding to the $1.2 million announced in March 2022.
Gbenga Ajayi, a QED Partner, commented on his company’s investment in FlapKap, saying, “Having invested and worked with similar companies to FlapKap in other regions such as Europe and Latin America, we are confident that this team can achieve similar success.”
FlapKap provides financing to e-commerce businesses, and in return, they repay a percentage of their revenue over the term of the loan. Although the startup is focused on serving SaaS and e-commerce businesses, they make up the bulk of its customer base, and Coucha explains why that’s the case.
“SaaS is still growing in its early stages in the Middle East, but it’s not big enough yet. On the other hand, e-commerce is booming in all regions of the world and is underserved by the current financial infrastructure in the Middle East and Africa.
Following this cycle, the startup intends to expand its operations in Egypt, the United Arab Emirates and Saudi Arabia. It also plans to consolidate its position as the leading provider of revenue-based finance in the region.