FlapKap, the first tech-enabled revenue-based finance platform in the MENA area that is revolutionizing e-commerce growth, has raised $3.6 million in a seed round. One fascinating thing about this round is that almost all established tech companies in Africa took part in this round. Tech companies such as A15, Bolt, NClude, and the like.
This funding infusion occurs just six months following the company’s pre-seed round. It appears to record important milestones, such as an MoM growth of about 200% in the number of funds distributed and the number of clients handled.
FlapKap New Funding
With this money, FlapKap wants to strengthen its position as the top revenue-based financing provider in the region and increase its ability to help more e-commerce businesses in the MENA region grow and scale. With more money and a low barrier to entry, FlapKap, which works with online stores that have been open for at least six months, can add many more stores to its already large list. Also, the company would use this capital to strengthen its position in North Africa.
Read also: South African Startup Talk360’s Seed Funding Hits $7M
With more money and a low barrier to entry, FlapKap, which works with online stores that have been open for at least six months, can add many more stores to its already large list.
This was made known by Ahmad Coucha when he said that the round would be used to develop and expand their capacity “to enable even more e-commerce platforms to attain full growth potential.”
Another way FlapKap can use this funding is by exploiting the new trend in online shopping. A recent study says that the e-commerce markets in Egypt alone are worth more than $5 billion and that by 2025, they will have grown by more than 50% to $20 billion. Also, as international shopping holidays like Black Friday become more popular in Africa and lead to more spending, revenue-based finance platforms like FlapKap need to be ready to take full advantage of this growing trend.
What FlapKap Is All About
When Ahmad Coucha was CEO of Kijami, he found out that small businesses like his often had to wait up to 120 days to get paid for their services. This made him decide to start FlapKap. These companies couldn’t take advantage of the rise in demand for their services because they didn’t have many ways to pay for them while they waited.
While visiting the US, Coucha learned that a few businesses facilitated small enterprises’ access to capital. In response, he and Khaled Nassef established FlapKap to offer funding for little eCommerce businesses in the MENA region.
Online businesses can get loans from FlapKap in exchange for paying back a portion of their earnings over the loan’s term. Although the startup concentrates on working with SaaS and eCommerce companies, the latter accounts for most of its infrastructure, and Coucha explains why.
SaaS is still growing in its early stages in the Middle East but is not yet sizable. On the other hand, e-commerce is booming worldwide and is underserved by the current infrastructure in the Middle East and Africa. ”
By focusing on companies that have previously had limited access to bank or venture capital finance, FlapKap helps e-commerce enterprises build and grow.
The business takes pride in its ability to make decisions quickly and based on data, which enables it to make offers to merchants less than 48 hours after they sign up. Since fees are taken out of sales, merchants don’t have to worry about late fees or other penalties if sales go down.
In the past, FlapKap has worked with Dresscode, Palma, Tam’s Shoemaker, and Raw African, among other reasons why many fintechs are launching new offices in the region. The population of the continent is predicted to double during the next 30 years, reaching 2.4 billion people. Particularly intriguing is the effect of this growth on a proportional basis. By 2050, North Africans will make up 25% of Africa’s population, an increase from their current percentage share.
Some of the reasons why fintechs like FlapKap might want to grow in North Africa could be because of the two things listed above.