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Flend Raises $3M to Accelerate Digital SME Lending in Egypt
Egypt-based fintech Flend has raised $3 million in seed funding to expand its digital lending operations for small and medium-sized enterprises (SMEs). The funding round combines equity and debt, reflecting investor interest in scalable financial infrastructure for underserved business segments in Egypt.
The equity portion was led by Egypt Ventures, with participation from Camel Ventures, Sukna Ventures, Plus VC, Banque Misr, and family offices including El Sewedy and Baalbaki. Debt financing was provided by the Micro, Small and Medium Enterprise Development Agency (MSMEDA) and several local banks.
Flend is licensed by Egypt’s Financial Regulatory Authority (FRA) as a Digital Non-Banking Financial Institution (Digital NBFI). The platform provides fully digital short-term working capital loans to SMEs, using embedded finance technology and direct integrations with more than 20 supply chain platforms across sectors including agriculture, healthcare, e-commerce, and retail.
Addressing a Longstanding Credit Gap
Access to working capital remains a critical issue for SMEs in Egypt, where the estimated credit gap exceeds $50 billion. Traditional financing channels often fall short due to collateral requirements, lengthy approval processes, and limited digital infrastructure.
Flend operates entirely online, offering an end-to-end lending process from onboarding and credit scoring to disbursement and repayment. All contracts are processed digitally, reducing administrative costs and increasing loan turnaround times.
According to the company, the new capital will be used to expand its team, strengthen its partnerships, and improve its technological capacity. Flend aims to inject EGP 1 billion (approximately $21 million) in SME loans over the next 12 months.
Embedded Finance Model at Scale
Flend’s approach centers on embedded lending—offering loans to SMEs within the platforms where they already conduct business. These platforms cover a wide range of industries and include supply chain networks that manage procurement, distribution, and inventory processes.
The embedded model allows Flend to assess transaction-level data in real time, improving credit scoring and reducing risk. The company’s direct integrations currently serve sectors such as agri-food processing, digital commerce, healthcare logistics, and manufacturing.
While embedded finance has gained visibility globally, its application in Egypt remains limited. Flend’s model attempts to localize this framework by aligning with domestic supply chain networks and working through licensed partnerships.
Institutional Backing for a Regulated Fintech Model
The participation of Egypt Ventures and Banque Misr in the equity round reflects growing institutional support for fintech platforms that operate under regulatory oversight. Egypt’s FRA has expanded its licensing framework for digital financial services in recent years, including pathways for Digital NBFIs targeting underserved sectors.
On the debt side, MSMEDA’s involvement signals policy alignment with private sector initiatives focused on SME development. The organization works with both public and private lenders to extend capital to smaller businesses that often face constraints in accessing traditional credit.
The seed funding also saw backing from venture firms with a regional footprint. Plus VC, Sukna Ventures, and Camel Ventures are among those who have invested in early-stage financial platforms across the Middle East and North Africa.
Building for Targeted Impact
Flend was founded by Ahmed Zaki, Nehal Helmy, and Saif Edeen El Bendari. The team brings experience in financial technology, product design, and operational logistics. Their aim is to address the structural barriers that prevent SMEs from securing short-term financing, particularly those operating outside formal credit systems.
Rather than offering general-purpose loans, Flend structures its products around working capital needs specific to supply chain operations. This focus is intended to support business continuity during procurement cycles and short-term payment delays, which are common across several of the sectors the platform serves.
The company’s embedded model also positions it to adapt to emerging demands as more Egyptian SMEs digitize parts of their operations. By meeting businesses within platforms they already use, Flend reduces the need for separate onboarding and document submission processes.
