Egyptian fintech startup Flend has announced the successful close of a $3 million seed funding round, comprising a combination of equity and debt. The fresh capital will enable the company to rapidly scale its embedded digital lending services aimed at small and medium-sized enterprises (SMEs). Flend’s unique positioning in the market stems from its fully digital lending platform, which directly integrates with supply chain platforms used by SMEs.
Backed by Leading Regional Investors
The equity portion of the round was led by Egypt Ventures and saw strong participation from prominent regional players such as Camel Ventures, Sukna Ventures, Plus VC, and Banque Misr. Additionally, family offices like El Sewedy and Baalbaki joined the round, signaling confidence in Flend’s vision and growth potential. On the debt side, Flend secured funding from MSMEDA and several other Egyptian banking partners, reinforcing the support from local financial institutions for SME-focused innovation.
Aiming to Close Egypt’s $50 billion SME Financing Gap
Flend plans to deploy the capital to enhance its technological capabilities, grow its team, and deepen integrations with digital platforms serving SMEs. The company is setting its sights on Egypt’s estimated $50 billion SME financing gap, with a mission to inject $21 million in working capital loans within the next year. This capital will be targeted toward sectors critical to the productive economy, addressing the ongoing liquidity challenges faced by smaller businesses.
Digitally Embedded Lending at the Core
Flend’s business model is centered on embedded finance, enabling it to offer loans directly within the digital platforms that SMEs already use to manage their operations. This reduces friction in the borrowing process by streamlining access to credit at the point of need. Through this embedded approach, Flend aims to lower customer acquisition costs and leverage transactional data for more accurate and inclusive credit scoring.
Regulatory Backing Fuels Innovation
The company is licensed by Egypt’s Financial Regulatory Authority (FRA) as a Digital Non-Banking Financial Institution (Digital NBFI), allowing it to issue loans entirely online. This status enables Flend to use digital contracts and e-signatures, ensuring a seamless and secure experience from onboarding through to disbursement and collections. Such regulatory approval not only validates the company’s model but also positions it to lead the digitization of SME finance in Egypt.
Voices from the Investment Community
Industry leaders and investors expressed their strong support for Flend’s mission. Hasan Haider, Founder and Managing Partner at Plus VC, highlighted that SME financing remains a significant hurdle across the region and praised Flend for offering a digital-first, accessible solution. Similarly, Abdelrahman Mansour, CEO of Egypt Ventures, emphasized the transformative potential of Flend’s platform in unlocking growth across various industries by easing access to capital for SMEs.
A Vision for Scalable Impact
Ahmed Zaki, Co-Founder and CEO of Flend, underscored the urgency and importance of addressing Egypt’s SME financing gap. “This funding round allows us to deliver financing where SMEs do business—embedded directly into the platforms and sectors that drive Egypt’s productive economy,” Zaki stated. He noted the surge in demand and reaffirmed the company’s goal of injecting $21 million in loans within the first year of this expansion phase.
Flend’s $3 million funding round marks a pivotal step in the evolution of SME financing in Egypt. By leveraging embedded fintech solutions and a fully digital infrastructure, the company is poised to unlock new levels of financial accessibility for underserved businesses. With the backing of key investors and regulatory support, Flend is set to play a central role in empowering Egypt’s entrepreneurial backbone.