Egypt’s fintech startup, Flapkap, seeking to revolutionize e-commerce and Software as a service (SaaS) businesses has raised a $1.2million seed round. This new raise will be used to further expand its product offering.
The round was led by A15 , an early stage-focused venture capital firm headquartered in Cairo.
Flapkap was founded in 2021 by Ahmad Coucha and Khaled Nassef . The AI-powered startup started out with a mission to empower small and medium enterprises (SMEs) and startups to turbocharge their growth without losing equity. It does this by guiding online businesses on effective revenue maximization and ad expenditure.
The fintech company offers online businesses feasible measures and techniques in optimizing cost while ensuring long term sustainability of the businesses.
Moreso, Flapkap provides the capital online businesses need to fund growth “through flexible payment terms for the digital media spend on a Revenue Based Sharing basis. This means that businesses pay back the media investment, plus a small fixed fee, as a percentage of their future revenue without any interest risk,” Flapkap said in a statement.
With a focus on the Middle East and Africa, Flapkap works at providing founders of ecommerce and SaaS businesses with the right solution to reduce excessive personal risk and manage cash flows.
Ahmad Coucha reiterated the strength of Flapkap’s growth solutions claiming it will help businesses optimize their ad spend levels, realize full growth potential, and bridge cash flow constraints.
Flapkap currently operates in Egypt and the United Arab Emirates while plans are underway to extend its services to Saudi Arabia.
“As the MEA region continues its rapid growth and digitization, SMEs remain a cornerstone of local economies – accounting for around 90% of all businesses and providing a major source of new job creation,” said Ahmad Coucha, co-founder of Flapkap.
According to the Enterprise, the fintech sector in Egypt is still young: Nearly half of fintech companies (43%) operating in Egypt are looking to raise seed funding, while 32% are still at the pre-seed funding or bootstrapping stages.