Flapkap Announces $3.6 Million Seed Round
The Egyptian revenue-based financing platform enables e-commerce businesses to scale and grow by targeting businesses that traditionally have limited access to bank or venture capital financing.
FlapKap announced the close of its $3.6M seed round which includes participation from investors Bolt by QED, Nclude, Outliers, and A15.
The company stated that it plans to use the funding to increase its capacity in helping more e-commerce businesses in the MENA region scale and maximise their growth potential. The company also 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.
It also offers insights and analytics to e-commerce businesses to help them accelerate growth and swift access to working capital financing for deployment on inventory and digital marketing spend.
The company prides itself on fast and data-driven decision making, which allows it to make merchants an offer less than 48 hours after they sign up. Fees are paid back as a percentage of revenues, meaning that if revenues slow down, so do repayments, and merchants do not have to worry about late fees or penalties.
Ahmad Coucha, FlapKap CEO said: “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.”
Gbenga Ajayi, a partner at QED, stated: “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.”
Recent research suggests that the e-commerce markets in Saudi Arabia, UAE and Egypt alone account for a combined $21.4 billion and is projected to grow by more than 50% to $33.3 billion in 2025.