Venture capital funding activity in the Middle East and North Africa (MENA) region was led by fintech startups this week. These included Egyptian digital payments solutions provider Paymob, and UAE-based fintech firm FlapKap, which raised Series B extension and pre-Series A funding, respectively. Other startups that secured funding included Oman-based cloud kitchen IO Kitchens, which raised a seed round, and Saudi Arabian proptech startup HissaTech, which raised a pre-seed round.
Venture capital investment in startups fell by 76% in August on a month-on-month basis, with $83 million raised across 30 deals, according to data compiled by Wamda. The deal value in July was $355 million. On a year-on-year basis, the funding declined 24%. The largest deal in August was a $30 million round raised by UAE’s fintech startup Yuze.
Egypt-based digital payments solutions provider Paymob, raised $22 million in a Series B extension round, led by EBRD Venture Capital to accelerate business growth. The other participants in the round included Endeavor Catalyst, and other existing investors, including PayPal Ventures, British International Investments, Dutch entrepreneurial development bank, FMO, A15, Nclude, and Helios Digital Ventures.
The latest round took the total Series B funding to $72 million. Founded in 2015 by Islam Shawky, Alain El Hajj, and Mostafa El Menessy, Paymob provides online and offline merchants with digital payment solutions. The fintech startup aims to use the extension round proceeds to pursue its growth strategy across MENA. According to the company, Paymob has recorded a 6x revenue growth since the initial Series B funding in the second quarter of 2022.
FlapKap
Fintech startup FlapKap raised $34 million in pre-Series A funding in a mix of debt and equity financing, led by BECO Capital. The other investors in the round included Pact VC, along with follow-on investments from A15, Nclude, and QED Investors. Debt financing was committed by Channel Capital.
Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers revenue-based and embedded finance solutions to help SMEs -especially those in e-commerce, retail, and restaurant sectors- to enhance their inventory and digital ads with quick cash and the option to pay later.
FlapKap is now based in Abu Dhabi, UAE. It plans to use the latest funding to expand its SME financing services throughout the GCC and the rest of the Middle East. It also plans to use the funding towards optimizing its technology infrastructure to launch trade finance products designed specifically for B2B businesses. The latest round of funding comes two years after FlapKap raised $3.6 million in a seed round in 2022, bringing the total funding so far to $37.6 million.
Oman-based cloud kitchen IO Kitchens secured $2.8 million in seed funding, led by Tanmia Small-Cap Fund to facilitate expansion. The funding round also saw participation from a group of family offices and regional investors.
Founded in 2021 by Hisham Hasan, IO Kitchens offers a diverse range of delivery-only meals and currently operates three cloud kitchens and a portfolio of over 30 F&B brands. It aims to use the new funding to expand its operations across Oman.
Saudi Arabian proptech startup HissaTech, which allows investors to invest in the property market through fractional ownership, secured $670,000 in a pre-seed round, led by angel investors.
Founded in 2024 by Ali Alshareef, HissaTech’s platform allows individuals to co-own properties, offering rental income and potential capital gains while lowering barriers to entry for smaller investors. The fractional ownership model would help boost real estate investment in Saudi Arabia. HissaTech aims to utilize the latest round to expand its customer base, enhance its digital platform, and build strategic partnerships within the proptech sector.
