Egyptian digital SME lending platform Flend has closed a $3 million seed funding round, combining both equity and debt financing to accelerate its mission of digitizing small and medium enterprise lending across the region.
The equity portion was led by Egypt Ventures, with participation from Camel Ventures, Sukna Ventures, Plus VC, state-owned Banque Misr, and prominent family offices including El Sewedy and Baalbaki. The debt component was secured from Egypt’s Micro, Small and Medium Enterprises Development Agency (MSMEDA) and several local banking partners.
Licensed by Egypt’s Financial Regulatory Authority (FRA) as a Digital Non-Banking Financial Institution (Digital NBFI), Flend operates as a fully digital lending platform that handles everything from SME onboarding and credit scoring to loan disbursement and collections through digitally binding contracts.
Embedded Finance Strategy
What sets Flend apart is its embedded finance approach. The platform has established over 20 partnerships, integrating directly into existing platforms that serve SME supply chains across diverse sectors including agri-food, healthcare, e-commerce, manufacturing, retail, and export.
This strategy allows Flend to meet SMEs where they already conduct business, rather than requiring them to seek out traditional lending channels. The approach is particularly relevant in Egypt, where SMEs often struggle with complex bureaucratic processes and limited access to formal financial services.
Addressing Egypt’s Financing Gap
The timing of Flend’s expansion comes as Egypt faces a significant SME financing challenge. According to industry estimates, the country has a $50 billion SME financing gap, representing a substantial opportunity for digital-first lenders.
With the fresh capital, Flend plans to inject EGP 1 billion (approximately $20 million) in working capital loans over the coming year. This ambitious target reflects both the scale of demand and the platform’s confidence in its ability to scale operations rapidly.
“This round allows us to finance SMEs where they do business—within the platforms that drive Egypt’s economy. We’ve seen rising demand and are ready to scale our reach,” said Ahmed Zaki, Co-Founder and CEO of Flend.
Regional Fintech Growth
Flend’s funding round reflects broader trends in MENA’s fintech sector, where digital lending platforms are gaining traction as alternatives to traditional banking infrastructure. The participation of both local and regional investors signals growing confidence in Egypt’s fintech ecosystem.
“Flend is solving a major regional challenge—making SME finance digital-first, embedded, and accessible,” commented Hasan Haider, Founder and Managing Partner at Plus VC.
The involvement of Banque Misr, one of Egypt’s largest state-owned banks, also suggests institutional recognition of digital lending’s potential to complement traditional banking services.
What’s Next
As Flend scales its operations, the platform will likely face challenges common to emerging market fintechs, including regulatory compliance, credit risk management, and competition from both traditional banks and other digital lenders entering the space.
However, the company’s embedded finance model and regulatory licensing position it well to capture market share as Egypt’s SME sector continues to digitize its operations and seek more flexible financing solutions.
The success of Flend’s approach could serve as a template for other MENA markets facing similar SME financing challenges, potentially making this seed round a stepping stone to regional expansion.
