Flash, an Egyptian fintech startup, has successfully raised $6 million in seed funding. The investment round was led by Addition, a venture capital firm headed by former Tiger Global executive Lee Fixel. Other participants in the funding round include Flourish Ventures and strategic angel investors. The funds raised will be utilized to accelerate product development and expand customer and business acquisition in Egypt.
Flash offers cashless payment solutions through its scan-and-pay service, allowing consumers and businesses to make transactions conveniently using QR codes. The startup aims to eliminate the need for cash and physical cards, providing an alternative to expensive NFC-enabled point-of-sale (POS) systems.
Why the Investors Invested
The investors were motivated to invest in Flash for several key reasons. Flash’s focus on driving financial inclusion aligns with the Egyptian government’s strategy to promote digital payment methods and reduce cash dependencies. With a significant portion of the population still relying on cash, there is a growing market opportunity for innovative fintech solutions. Flash’s cashless payment system addresses the inefficiencies associated with cash-based transactions, such as fraud and theft, which were observed during the founders’ time at Uber. By providing a simple and secure payment solution, Flash aims to enhance consumer experiences and support businesses in Egypt’s growing e-commerce sector.
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Flash has also demonstrated impressive growth and market traction. The startup has obtained approval from the Central Bank of Egypt to operate as a technical payment aggregator and has established a partnership with Banque Misr, a leading Egyptian bank. These achievements position Flash as a key player in the country’s cashless ecosystem, making it an attractive investment opportunity. Flash’s revenue, generated through processing fees charged to businesses, has been experiencing steady month-on-month growth of 30%. Additionally, the startup has processed over 50,000 transactions, accumulating a transaction value of over 10 million Egyptian pounds (~$324,000).
Again, the investors recognize the potential of QR code technology and its advantages over NFC-based solutions. QR codes provide a cost-effective and easy-to-implement payment method for businesses, making them popular in markets like India. With the Egyptian central bank also expanding instant payment networks, Flash aims to achieve instant settlement and lower transaction costs in the long term. By leveraging QR code technology and the evolving payment landscape in Egypt, Flash presents a compelling investment opportunity for investors seeking exposure to the country’s fintech sector.
A Look at Flash
Flash, founded in 2021, is a fintech startup that operates in partnership with Banque Misr, one of Egypt’s prominent banks. The company’s co-founders, Erik Gordon and Sherine Kabesh, are both former Uber executives who identified the inefficiencies of cash-based transactions during their time at the ride-hailing giant. Flash offers a range of cashless payment solutions to businesses and consumers, primarily focusing on e-commerce platforms and businesses that rely on cash on delivery, such as pharmacies, restaurants, fast-food chains, and grocery shops.
One of Flash’s core products is the “Flash on Delivery” service, which allows businesses to present QR codes to customers during product delivery. Customers can scan these QR codes using the Flash app and complete the payment transaction instantly. By integrating this service, Flash enables businesses to accept digital payments without the need for expensive NFC-enabled point-of-sale systems. Furthermore, Flash provides an efficient settlement process, with payments made on delivery or in-store settled the following day, giving the company a competitive advantage over other digital payment solutions in the market.
Read also : Egyptian FinTech Fawry Introduces “Yellowcard”: A Game-Changing Prepaid Debit Card for Cashless Transactions
Flash aims to serve over 100 businesses in the next 12 months, focusing on expanding its customer base and product offerings. The startup faces competition from other players in the Egyptian fintech space, such as Telda, Khazna, and Paymob. However, Flash differentiates itself by leveraging QR code technology, which offers a cost-effective and secure payment solution for businesses and consumers. With the support of the recent seed funding, Flash is well-positioned to contribute to Egypt’s goal of driving financial inclusion and transitioning towards a cashless society.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard