FlapKap, the Abu Dhabi-based and Egypt-born fintech platform known for offering revenue-based and embedded financing solutions, has successfully raised $34 million in a pre-Series A funding round. The capital injection, which includes both equity and debt, positions the company to expand its operations across the MENA region, particularly focusing on empowering small and medium-sized enterprises (SMEs) in the UAE and GCC markets.

Led by BECO Capital, this funding round saw participation from prominent investors such as Pact VC, A15, Nclude, and QED Investors, with debt financing provided by Channel Capital. This brings FlapKap’s total funding to $37.6 million, a significant milestone for the company founded in Egypt by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani.

FlapKap’s goal is to scale its impact across the MENA region, providing essential capital to SMEs that often face barriers in accessing traditional financing. With this new funding, the company plans to further strengthen its technology infrastructure, develop trade finance products aimed at B2B businesses, and increase the deployment of capital to support a growing number of enterprises.

The MENA region faces a significant financing gap for SMEs, estimated by the International Finance Corporation at $180 billion. There are approximately 19–23 million micro, small, and medium-sized enterprises (MSMEs) in the region, accounting for 80–90% of all businesses. However, these businesses often struggle to secure loans due to limited access to reliable financial data, inadequate infrastructure, and perceived risks by traditional banks. This funding gap has left millions of SMEs without the necessary capital to scale operations and reach their full potential.

FlapKap has emerged as a key player addressing this issue by leveraging technology and data to facilitate access to funding for underserved SMEs. Unlike conventional financial institutions, which often rely on rigid credit scoring systems, FlapKap uses alternative data sources such as e-commerce platforms, social media activity, and digital payments to streamline the underwriting process. This data-driven approach enables the platform to assess a business’s risk profile in less than 48 hours and offer flexible repayment options.

With this new round of funding, FlapKap intends to deepen its presence in the UAE and the GCC region, deploying more capital to SMEs and scaling its operations. The platform’s proprietary technology integrates with a range of third-party systems, including payment gateways, Point-of-Sale (PoS) systems, online reviews, and enterprise resource planning (ERP) platforms, allowing FlapKap to offer precise financing solutions to a diverse array of businesses.

The company has expanded beyond its initial focus on e-commerce and now serves a wide spectrum of industries, including retail, hospitality, and B2B businesses. By adopting artificial intelligence (AI) models and open banking frameworks, FlapKap is able to automate much of the lending process, reducing operational costs and providing faster access to capital for SMEs.

“Our growth is driven by data and technology, which enables us to offer tailored solutions that help SMEs overcome barriers to funding,” said Ahmad Coucha, Co-founder and CEO of FlapKap. “The new capital will allow us to continue innovating and expanding across key markets in the region. We’re committed to helping SMEs grow, thrive, and contribute to the region’s economic development.”

The $34 million funding round reflects strong investor confidence in FlapKap’s business model and future prospects. Walter Gontarek, CEO of Channel Capital, noted that “FlapKap’s use of technology and data to drive SME financing in a traditionally underserved market is truly impressive. Their platform has the potential to reshape how small businesses in the region access and manage capital.”

Karim Abadir, Principal at BECO Capital, echoed these sentiments, adding, “FlapKap’s innovative, data-driven approach is transforming the SME financing landscape across the MENA region. We believe in their mission and are excited to support them as they continue to scale.”

Reem Wyndham, General and Founding Partner at Pact VC, also highlighted the strength of FlapKap’s leadership and execution. “Ahmad and his team have a clear vision for solving the SME financing gap in the MENA region. Their ability to execute has been remarkable, and we’re thrilled to be part of their journey.”

With its sights set on regional expansion and continued innovation, FlapKap is well-positioned to become a leading fintech player in the MENA region. The company’s unique approach to SME financing, supported by cutting-edge technology and data analytics, is expected to unlock new growth opportunities for thousands of businesses across the region.

As FlapKap works to bridge the financing gap for MENA’s SMEs, it aims to create a more inclusive financial ecosystem that enables businesses to access the capital they need to grow. The company’s track record of rapid growth, doubling its quarterly originations and disbursements over the past two years, underscores its ability to scale while maintaining strong relationships with merchants and investors alike.

FlapKap’s latest funding round marks a significant step forward in its mission to empower SMEs across the region, setting the stage for a broader transformation in how small businesses access capital in the MENA region.