Egypt-Based E-Commerce Platform, FlapKap Secures $3.6M in a Seed Round to Consolidate in MENA

Egypt-Based E-Commerce Platform, FlapKap Secures $3.6M in a Seed Round to Consolidate in MENA

FlapKap, an Egyptian-based tech-enabled B2B revenue-based financing platform that is revolutionizing e-commerce growth across the MENA region, has sealed a $3.6 million Seed round led by Bolt by QED, Nclude, Outliers, and A15.

The funding comes six months after the startup received a pre-seed round, and it coincides with significant milestones such as a 200 percent increase in the amount of funding disbursed MoM and the number of clients served.

FlapKap plans to use the new funds to help more e-commerce businesses in the MENA region scale and maximize their growth potential, as well as to solidify its position as the region’s foremost and leading revenue-based financing player. The startup hopes to expand its presence in Saudi Arabia, the UAE, and Egypt by allowing e-commerce businesses to scale their inventory and digital ads now while paying later.

Commenting on the round, Ahmad Coucha, FlapKap CEO and Cofounder said, “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. Our rapid growth within a short period 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.”

What the Investors are saying

Investor QED has invested in some of FlapKap’s most successful international peers such as Wayflyer and Fairplay, which have raised more than $900 million in financing combined.

Gbenga Ajayi, Partner at QED commented, “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”.

Basil Moftah, Partner at Nclude added, “We value companies and entrepreneurs that create innovative solutions that push the envelope and are proud to support FlapKap’s previously unavailable financial services to SMEs in the Mena regions”

Mohammed Almeshekah, Partner at Outliers said, “Coucha and Khaled have combined their first-hand experience and insights at Kijami & N26 and hit the ground running with strong initial performance. We are thrilled to be part of their journey from the beginning”

Karim Beshara, Partner at A15 commented, “Having embarked on this journey with Ahmad from the very start, we are proud FlapKap’s success so far. We are pleased with the team’s momentum and are excited about the growth opportunities going forward”

What you should know about FlapKap

Ahmad Coucha and Khaled Nassef founded FlapKap with the founding team, Sherif Bichara and, Adel Hodroj to enable e-commerce businesses to scale and grow, focusing on businesses with limited access to bank or venture capital financing. FlapKap provides e-commerce businesses with insights and analytics to help them accelerate growth and gain quick access to working capital financing for inventory and digital marketing spending. It prides itself in making quick, data-driven decisions, which allows it to make an offer to merchants less than 48 hours after they sign up. Fees are paid back as a percentage of revenues, so if revenues fall, repayments fall as well, and merchants do not have to worry about late fees or penalties.

FlapKap’s new capital and low entry threshold allow it to welcome a lot more online stores to its already expansive roster. It targets e-commerce businesses that have been operational for at least 6 months. FlapKap has previously worked with some of the region’s most promising e-commerce companies, including Dresscode, Palma, Tam’s Shoemaker, and Raw African, among others, assisting in some cases in generating >85% increase in revenue and over 70% increase in net profits within a few months. It has also recently integrated its AI-based insights and financial data analytics with Shopify, Woocommerce, Facebook, and Google, and expects to form additional alliances with ecosystem players.

According to recent research, the e-commerce markets in Saudi, UAE, and Egypt account for a combined $21.4 billion, with a projected growth of more than 50% to $33.3 billion by 2025. Furthermore, as global shopping festivals such as Singles Day and Black Friday, also known as ‘White Friday’ in the MENA region, continue to grow in popularity and spending, it is becoming increasingly important for online retailers to prepare themselves to capitalize on the growing phenomenon.