Egypt E-Commerce Startup FlapKap Raises $3.6M Seed Round

Founded in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara and Adel Hodroj, FlapKap provides business financing for e-commerce and SaaS business in the MENA region that have traditionally had limited access to bank or venture capital financing. The company offers artificial intelligence-based insights and financial data analytics to help e-commerce businesses maximize their growth potential and provide inventory funding.

“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,” said Ahmad Coucha, CEO and Cofounder at FlapKap. “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.”

FlapKap has so far worked with online stores such as Dresscode, Palma, Tam’s Shoemaker, and Raw African, amongst others. According to the startup, it has generated almost 85% increase in revenue and over 70% increase in net profits for their clients across the region.

The new funding will be used to increase FlapKap’s capacity in supporting more e-commerce businesses in MENA, as well as solidifying its presence in Saudi Arabia, UAE and Egypt.

Egypt has seen an increase in funding so far this year. In H1’22, Egyptian startups raised $300 million, marking a 106% increase in funding compared to H1’21, according to data platform Magnitt. E-commerce was one of the most funded sectors with some of the lion’s share of investments going to Cartona, raising $12 million; Wasla raising $9 million; and Mazaya raising $5 million.