Flash, an Egypt-based fintech startup, has raised $6 million in its seed funding round, led by Addition, a venture capital firm headed by former Tiger Global executive Lee Fixel. Flourish Ventures and other strategic angel investors also participated in the round.
Flash is a fintech startup that provides short-term loans to businesses in Egypt. The company’s platform allows businesses to apply for loans online and receive funds within minutes. Flash also offers a variety of other financial services, such as bill payments and money transfers. The startup recently obtained approval from the Central Bank of Egypt in partnership with Banque Misr to operate as a technical payment aggregator. With the approval, Flash has positioned itself to key into Egypt’s apex bank move to promote contactless payments.
With the newly raised funds Flash will be able to expand its lending platform and to reach more businesses in Egypt. The company also plans to develop new products and services, including the development of a mobile app for businesses. Furthermore, Flash will allow businesses to accept payments without needing the tasking technical integration typically encountered with expensive NFC-enabled point-of-sale (POS) systems. This will also enable customers to purchase with their phones by adding any existing bank card or digital wallet to the app and scanning a QR code that is presented by a business at payment points.
“We’re eliminating the need for cash or carrying cards for our consumers and the POS machine on the merchant side. With QR codes, businesses don’t have to worry about integration, setup and maintenance fees and it’s low tech, so anyone with a camera on their phone can pay that way,” said Erik Gordon, Flash co-founder and CEO, told TechCrunch.
Flash was founded in 2021 by Uber alumni Erik Gordon and Sherine Kabesh. The startup operates as a payment application that provides cashless payment solutions for consumers and businesses through a scan and pay service.
Speaking on the investments and future plans, Gordon, Flash’s CEO, said the company was “excited and proud” to be launching a new contactless payment method in Egypt:
“Our mobile application removes transactional challenges for businesses looking for an easier solution than the POS. Our goal is to make payments easier, safer and faster for everyone. We are also excited to be releasing new features to help consumers make better spending decisions. We are humbled by this seed investment, which will enable us to invest in our product and business and customer acquisition, and utilise the valuable insights of our experienced investment partners to advance the economy of Egypt.”
Andrew Miskiewicz from Addition also spoke on the seed round, and said:
“Flash is transforming the payments landscape in Egypt, simplifying the complex transactional process for consumers and businesses with a safe and easy-to-use application. We look forward to supporting Flash and its leadership team as they continue to accelerate product development, expand customer bases and help promote financial inclusion.”
The Egyptian fintech sector is growing rapidly. In 2022, Egyptian fintech startups raised a record $100 million in venture capital funding. Flash is one of many Egyptian startups that are making waves in the global tech scene.