Egyptian startup FlapKap, a tech-enabled revenue-based financing platform that aims to revolutionise the e-commerce space, has announced the close of its US$3.6 million seed round.
Founded earlier this year by Ahmad Coucha and Khaled Nassef, FlapKap helps online stores to maximise their growth potential by using artificial intelligence-based insights and financial data analytics to assess the business and ultimately provide value through inventory funding, media funding and optimisation.
The US$3.6 million seed round included participation from Bolt by QED, Nclude, Outliers, and A15. This latest capital injection comes six months after the company’s pre-seed raise, and comes after it recorded month-on-month growth of around 200 per cent in amount of funding disbursed and number of serviced clients.
With the new funding, FlapKap plans to increase its capacity in helping more e-commerce businesses in the MENA region scale and maximise their growth potential, as well as consolidate its position as the region’s leading revenue-based financing player. The company aims to solidify its presence in Saudi Arabia, the UAE and Egypt by offering e-commerce businesses the ability to scale their inventory and digital ads now, while flexibly paying later.
“As we develop our platform and expand our capacity to enable even more e-commerce platforms to attain their full growth potential, we’re excited to be joined by prominent global investors with deep knowledge and extensive expertise in the revenue-based financing space, having previously invested in some of our international peers,” said Coucha.
“Our rapid growth within a short period of time demonstrates the massive unmet demand in our region and, being founders ourselves, we take huge pride in being able to offer this founder-friendly financing to founders and entrepreneurs all across the region.”
Investor QED has invested in some of FlapKap’s most successful international peers, such as Wayflyer and Fairplay, which have raised more than US$900 million in financing combined.
“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,” partner Gbenga Ajayi said.
