FlapKap raises $34M pre-Series A to close MENA's SME financing gap
What's the deal? Abu Dhabi-based fintech FlapKap has raised $34 million in a pre-Series A round of debt and equity. BECO Capital led, with new backing from Pact VCDealroom has a profile for this one. Try Dealroom → and follow-on investment from A15Dealroom has a profile for this one. Try Dealroom →, NcludeDealroom has a profile for this one. Try Dealroom →, and QED Investors. Channel Capital provided debt financing, bringing FlapKap's total funding to $37.6 million.
What's the endgame? FlapKap finances e-commerce, retail, and restaurant businesses, offering instant funding to scale inventory and advertising that companies repay later. It targets firms shut out of traditional bank loans or venture capital.
How it works: The platform connects to a business's e-commerce sites and social accounts, returning a funding offer within 48 hours. It underwrites using AI credit models and third-party data — from payment gateways to online reviews and ERP systems — to cut operational costs.
Why now? FlapKap is chasing a $180 billion SME financing gap across the MENA region, where millions of small businesses are overlooked by banks citing insufficient data or perceived risk. Founded by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, it started in Egypt before setting up headquarters at Abu Dhabi's Hub71Dealroom has a profile for this one. Try Dealroom →.
What's next? The capital will fund expansion across the UAE, Egypt, and the wider GCC region. FlapKap also plans to launch trade finance products for B2B businesses.
The signal: Chief executive officer Ahmad Coucha said data and technology are key to "overcoming the challenges SMEs face when trying to access financial services." Backers see the model as a shift in regional lending — Pact VC's Reem Wyndham called it "a turning point for SME financing." With alternative data replacing bank collateral, tech-driven lenders are moving to serve a market legacy institutions have long avoided.
Read more: accent-soc.com
Image credit: Generated with Gemini
