To accelerate digital financial inclusion across Egypt, fintech startup Flend has raised $3 million in seed funding through a blended equity and debt round to expand its digital lending services tailored for small and medium-sized enterprises (SMEs).
Founded by Ahmed Zaki, Nehal Helmy, and Saif Edeen El Bendari, Flend is licensed by the Financial Regulatory Authority (FRA) as a Digital Non-Banking Financial Institution (Digital NBFI).
The platform offers a fully automated lending process, from onboarding and credit scoring to disbursement and repayment, secured by digitally binding contracts.
With this new funding, according to the team, Flend aims to grow its operations, scale its workforce, and deepen its partnerships across critical economic sectors such as agriculture, healthcare, e-commerce, retail, manufacturing, and exports.
Embedded Finance That Meets SMEs Where They Operate
Flend’s approach is rooted in embedded finance, directly integrating into over 20 digital platforms used by SMEs in their daily supply chain and commercial activities.
“We are not just a lender; we are building infrastructure that lives inside the platforms SMEs already trust,” said Nehal Helmy, co-founder and Chief Operating Officer.
“Our goal is to make financing a seamless, background process that supports business continuity rather than disrupts it.”
This innovative model allows SMEs to secure credit within the same tools they use to buy, sell, or manage inventory, removing barriers such as branch visits, paperwork, and long approval cycles.
CEO Ahmed Zaki added,
“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 rapidly.”
Investor Backing Signals Strong Market Confidence
The $3 million seed round was led by Egypt Ventures, and joined by Camel Ventures, Sukna Ventures, Plus VC, and Banque Misr, along with family offices including El Sewedy and Baalbaki.
The debt portion came from MSMEDA (Micro, Small, and Medium Enterprise Development Agency) and several local banks, underlining broad institutional confidence in Egypt’s fintech future.
“Flend’s ability to digitize and embed lending within supply chains gives them an edge in solving real challenges faced by SMEs,” said Mohamed Abou El Enein, Managing Director at Egypt Ventures.
“We believe this model has high scalability and measurable impact across underserved markets.”
Tackling Egypt’s Persistent SME Credit Gap
Despite comprising 98% of Egypt’s private sector businesses and employing over 80% of the labor force, SMEs remain largely excluded from traditional financial services due to rigid banking requirements.
Flend’s digital lending bypasses these constraints by leveraging alternative data for credit scoring and providing fast, secure access to capital.
“Access to finance is still one of the top barriers to SME growth in Egypt,” noted Dr. Yasmine Helal, an independent financial inclusion consultant.
“What Flend is doing isn’t just about tech, it’s about enabling opportunity in a segment that has been historically overlooked by conventional banks.”
A Regional Signal of Fintech Maturity
Flend’s success reflects a broader shift in the MENA region’s fintech landscape, where digital lending is gaining traction as a response to structural financial exclusion.
According to industry estimates, MENA’s digital lending market is projected to grow at a CAGR of 19.6% through 2028, driven by youthful populations, high mobile penetration, and evolving regulatory support.
As the startup enters its next phase, co-founder Saif Edeen El Bendari emphasizes that the mission extends beyond lending.
“We envision Flend as a financial backbone for SMEs, a system that quietly powers growth, resilience, and innovation across Egypt and eventually, the region.”
Talking Points
Egypt is rapidly positioning itself as a leading tech hub in the MENA region, with Cairo ranked 3rd in MENA and advancing globally in the Startup Genome 2024 report, earning a 10/10 in funding and 8/10 in talent and experience.
The country is home to over 2,100 startups valued at more than $8 billion, employing over 50,000 people. In 2024, Egyptian startups raised $329 million across 78 deals, accounting for over 30% of Africa’s total venture funding, despite a global slowdown.
Fintech leads the ecosystem, securing up to 45% of total startup funding, thanks to strong regulatory support and digital infrastructure. Egypt’s ICT sector now contributes over 5% of GDP, backed by a young, tech-savvy population, high internet penetration (72%), and a large annual pool of STEM graduates.
With ongoing government efforts like the Digital Egypt initiative, Egypt is solidifying its role as a resilient and scalable tech ecosystem in the region.
