Flow48, a leading fintech revolutionizing SME lending in emerging markets, has secured a substantial $69 million in Series A funding. This investment will fuel the company’s expansion across the UAE, South Africa, and Saudi Arabia, with $10 million specifically earmarked for scaling operations within South Africa.
The funding round, comprising both debt and equity financing, was spearheaded by Breega, with participation from prominent investors like 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, and +VC. This milestone signifies a major leap forward in Flow48’s mission to redefine access to capital for underserved SMEs across Africa and the Middle East.
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Bridging the SME Funding Gap
“SMEs are the backbone of any economy, generating 90% of jobs and contributing 50% of GDP, yet they remain critically underserved in terms of financing,” says Idriss Al Rifai, CEO and Co-Founder of Flow48. “We are dedicated to bridging this gap and fostering sustainable economic growth.”
Flow48’s platform leverages alternative data sources and advanced risk assessment tools to provide tailored financial solutions to SMEs. This approach addresses the unique challenges faced by SMEs in accessing traditional lending channels, which often rely on outdated credit scoring models and limited data.
Expanding Reach and Impact
With this new funding, Flow48 is poised to expand its footprint in existing markets like the UAE and South Africa, while also venturing into Saudi Arabia, the largest economy in the MENA region. The company will continue to enhance its platform capabilities, adding new features and functionalities to better serve the evolving needs of SMEs.
“SME lending in South Africa is undergoing a transformation, with technology playing an increasingly vital role,” says Altesh Baijoo, Managing Director of Flow48 South Africa. “Our integrated data ecosystem and enhanced underwriting capabilities provide a robust service to SMEs and our partners.”
A Collaborative Approach to SME Growth
Flow48 recognizes the importance of collaboration in driving SME growth. The company is actively seeking partnerships with traditional financial institutions and fintech’s to distribute its SME lending solutions, fostering a more inclusive and accessible financial ecosystem.
“This is a tide that raises all boats,” adds Baijoo. “Every success in this space benefits the sector as a whole, and we are eager to contribute to the growth of the sector while striving to be the leader across the markets we operate in.”
Investor Confidence and Future Outlook
Flow48’s exceptional progress since its inception has garnered significant investor confidence. The company has exceeded its roadmap targets and achieved key milestones, attracting substantial debt facilities from sophisticated financial institutions.
“It’s an honor to lead Flow48’s Series A,” says Ben Marrel, CEO & Founding Partner at Breega. “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.”
With this latest funding round, Flow48 is well-positioned to solidify its leadership in the SME lending space, driving financial inclusion and empowering businesses across emerging markets
