In a significant boost to the fintech landscape, UAE-based Flow48 has closed a $69 million Series A funding round in a mix of debt and equity to redefine access to capital for underserved Small and midsize enterprises (SMEs) across the Middle East and Africa.
Led by Parisian VC Breega, the round saw participation from prominent investors, including 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, and Plus VC.
Flow48 is addressing a critical gap by meeting the surging demand for innovative financing solutions in the fast-evolving SME lending space. Founded in 2022 by Idriss Al Rifai, Flow48 specializes in transforming future revenues into upfront capital for SMEs, offering flexible financing solutions of up to $20 million based on business revenue and invoices.
With the latest funding, the company aims to expand its footprint in Saudi Arabia and the UAE while enhancing its platform capabilities with advanced data analytics and AI-powered risk assessment tools.
Key Takeaways
- Flow48 raised $69 million in a Series A round led by Breega, with participation from 212, Speedinvest, Daphni, and others.
- The funding will drive expansion in Saudi Arabia and the UAE, alongside platform enhancements using AI and data analytics.
- Flow48 provides revenue-based financing, disbursing funds within 48 hours to SMEs in emerging markets.
- The new funding will help Flow48 further expand in its two key markets—Saudi Arabia and the UAE—and strengthen its presence in South Africa
Why it matters
Flow48’s latest funding round underscores the growing demand for innovative SME financing solutions in emerging markets. SMEs, which account for 90% of jobs and 50% of GDP in many economies, often struggle to access traditional financing. By leveraging revenue-based financing and advanced risk assessment tools, Flow48 is bridging this gap, fostering sustainable growth, and aligning with regional goals to diversify economies beyond oil and real estate.
Game-changer for SME financing
Flow48’s $69 million Series A marks a pivotal moment in the fintech’s mission to transform SME lending. The funding, a mix of debt and equity, builds on the company’s $25 million pre-Series A round in November 2023. Flow48’s innovative model allows SMEs to access upfront capital by leveraging future revenues, offering flexible terms, and disbursing funds within 48 hours.
Idriss Al Rifai, CEO and Co-Founder of Flow48, emphasized the importance of SMEs in driving economic growth: “SMEs are the backbone of every economy. They create 90% of jobs and contribute to 50% of GDP, yet they remain under-supported. We’re deeply committed to bridging this gap and fostering sustainable growth.”
Expanding across MENA
With the new funding, Flow48 plans to deepen its presence in Saudi Arabia, the largest economy in the MENA region, and enhance its platform capabilities. The company will leverage alternative data sources and AI-powered risk assessment tools to deliver tailored financial solutions. Highlighting Flow48’s potential, Ben Marrel, CEO and Founding Partner at Breega, said: “Their innovative approach to SME financing is reshaping the lending landscape in the GCC, unlocking capital for businesses that are the backbone of the region’s economy.”
Data-driven insights for smarter lending
Beyond financing, Flow48 is centralizing critical data insights to address the fragmented nature of SME operational data in the region. By aggregating data on payments, operational behaviors, and sector-specific performance, the company is building a robust foundation for smarter decision-making and risk-based lending. Enrique Martínez Hausmann, Principal at Speedinvest, is impressed by Flow48’s execution. “Idriss and his team are building something unique and impactful. Having seen similar revenue-based financing models succeed in other regions, I’m confident Flow48 is on track to lead the market,” he said.
Flow48 — Empowering SME growth in MENA
Flow48’s $69 million Series A is a testament to the growing importance of innovative fintech solutions in empowering SMEs. With this funding, the company plans to expand its operations in Saudi Arabia and the UAE, enhance its platform with advanced analytics and AI tools, and introduce new products tailored to SME needs.
By transforming future revenues into upfront capital, Flow48 is not only addressing a critical financing gap but also driving financial inclusion and economic diversification across the MENA region. For SMEs and investors alike, Flow48 represents a beacon of opportunity in an underserved market, positioning itself as a leader in the dynamic SME lending space.
