In a significant development for the fintech industry, FlapKap, a fintech platform with its origins in Egypt and now headquartered in Abu Dhabi, has successfully secured $34 million in a pre-Series A funding round.

This substantial investment, nearly two years after the company’s inception, is strategically aimed at expanding its operations to better support small and medium-sized enterprises (SMEs) across the Middle East and North Africa (MENA) region.

The investment of capital will serve as a catalyst for FlapKap to strengthen its platform, which offers revenue-based financing solutions tailored to the specific needs of SMEs.

This pioneering financial model facilitates businesses in accessing capital without compromising equity, providing a flexible alternative to traditional financing avenues.

FlapKap’s Journey: A Timeline of Growth

January 2022: Established in Cairo, Egypt
March 2022: Successfully secured seed funding to fuel initial operations
July 2022: Onboarded the first brand, marking a significant milestone in their growth.
December 2022: Expanded operations into the United Arab Emirates, demonstrating international reach and ambition

Transparency and Change as Core Values

FlapKap places great importance on transparency, both with its partners and within the team. This commitment is reflected in its business practices, ensuring that there are no hidden fees and that partners are fully informed about their financial commitments.

The company promotes a culture of openness and honesty within its team, recognising that trust is pivotal in propelling collective progress.

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Embracing change and adaptability lies at the heart of FlapKap’s operational ethics. The company views change as a catalyst for growth, compelling its team members to evolve and become more responsive to the constantly changing needs of their partners. Thriving in a fast-paced and constantly evolving market is a testament to the organisation’s resilience and agility.

Empowering SMEs through Tailored Financing Solutions

Historically, large corporations have enjoyed greater ease of access to credit, while countless SMEs struggled with cash flow challenges. FlapKap stands ready to bridge this gap by offering tailored growth solutions, thereby levelling the playing field for SMEs.

Who Stands to Benefit?

FlapKap’s funding solutions cater to growing SMEs in different sectors, including retailers, e-commerce businesses, restaurants, trading, and services. Eligible businesses should demonstrate healthy revenue generation and a keen interest in expanding their operations without compromising equity.

If you operate a growing SME business such as retail, e-commerce on platforms such as Shopify and Amazon, restaurants, cafes, hotels, or clinics, and have a proven track record of generating revenue and stable fundamentals over a minimum of one year, FlapKap is well-positioned to support your growth trajectory.

Legal entities registered in the UAE that comply with regulatory frameworks and requirements are also eligible to explore FlapKap’s funding solutions to fast-track their expansion plans.

Flexible, Fast, and Insightful Funding Solutions

FlapKap’s innovative funding model provides a quick and flexible approach to securing funding, which can be conveniently managed through a user friendly app. The company offers various funding options to suit the unique needs of diverse businesses:

Revenue-Based Funding: Tailored for e-commerce businesses, this funding model involves funding your working capital, charging a small fee, and recouping a percentage of your revenues until the obligation is fulfilled. During slower months or seasons, repayment amounts are adjusted accordingly, ensuring a fair and sustainable financial arrangement.

POS Merchant Advance: This option empowers businesses to advance their future revenue, particularly beneficial for e-commerce ventures, restaurants, retail stores, or clinics. This cash investment safeguards operational cash flow and supports sustainable growth ventures.

Dynamic Credit Line: Leveraging your business’s trade receivables as collateral, this dynamic credit solution provides rapid access to funds. Businesses can draw from this line of credit as needed, paying fees only on utilised funds, thereby optimising cash flow management.

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Unmatched Convenience and Transparency

FlapKap prides itself on its commitment to simplicity and transparency. The company adheres to a fixed fee structure, typically ranging from 1.5% to 2.5% per month for the entirety of the expected repayment duration, excluding any additional processing fees or hidden charges.

The application process for securing funding is also entirely free, swift, and straightforward, requiring only a few minutes of your time.

Eligibility and Funding Parameters

As a general guideline, businesses seeking funding from FlapKap should ideally demonstrate a minimum revenue threshold equivalent to half their monthly revenues while also being eligible for a maximum funding amount equivalent to double their monthly revenues.

With its recent funding success and a reliable suite of tailored financing solutions, FlapKap is positioned to transform the SME landscape in the MENA region.