The $69 million Series A funding round for Flow48, a leading fintech that is revolutionizing SME lending in emerging markets, was successfully closed. Breega led the round, which consists of both debt and equity. Other investors include 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, and Plus VC. The company’s goal to rethink access to capital for marginalized SMEs in the Middle East and Africa has advanced significantly with this milestone.
Flow48 exceeded its roadmap targets and achieved key milestones, including:
- Securing a large and scalable debt facility from sophisticated financial institutions.
- Strengthening its market presence in South Africa while cementing its position in the UAE.
- Introduce new products for SMEs and expand into Saudi Arabia and other potential key markets.
Flow48 plans to use this new funding to replicate its solution in Saudi Arabia, the largest economy in the MENA region with a large but undeveloped SME ecosystem, and to further expand in its two main markets. The business will also keep adding features to improve the platform’s functionality, using sophisticated risk assessment tools and other data sources to provide SMEs with specialized financial solutions.
“We’ve seen tremendous progress in the SME lending landscape, and this additional funding allows us to enhance our services even further,” said Idriss Al Rifai, CEO & Co-Founder of Flow48. “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.”
In addition to lending, Flow48 is consolidating important data insights in an area where operational data from SMEs is dispersed. Flow48 is creating a strong basis for risk-based lending and more intelligent decision-making by combining data on payments, operational behaviors, and sector-specific performance.
In line with the government’s objectives to diversify local economies beyond the oil, gas, and real estate sectors, Flow48 is essential in enabling SMEs to spearhead economic change. The company has also received a lot of interest from fintechs and traditional financial institutions looking to collaborate in order to distribute SME lending solutions, highlighting Flow48’s leadership position in the industry.
“The SME lending space is seeing rapid growth across the region, with recent capital raises demonstrating the sector’s enormous potential,” said Idriss. “This is a tide that raises all boats. Every success in this space benefits the sector as a whole, and we’re thrilled to contribute to this momentum while working to be the leader in the region.”
The company is deeply grateful for the support of its investors, including Breega, who led this round. “Having knowledgeable investors on board who bring not only capital but also deep expertise is critical to achieving our vision of becoming the leading SME lender across the region,” added Idriss.
Ben Marrel, CEO & Founding Partner at Breega, added,It’s an honour to lead Flow48’s Series A. The team’s ability to consistently deliver on their ambitious roadmap is remarkable, demonstrating both vision and execution. 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. We are proud to support Flow48 in scaling their impact and driving financial inclusion across the market.”
Enrique Martínez Hausmann, Principal at Speedinvest, said, “I’ve had the privilege of watching Flow48 grow since their pre-seed round, and I’m incredibly impressed by how they have executed their vision. Idriss and his team are building something unique and impactful and having seen similar revenue-based financing models succeed in other regions, I’m confident Flow48 is on track to lead the market.”
