FinTech firm FlapKap and Logistics giant Aramex collaborate to Turbocharge SME funding
The partnership aims to elevate the growth of UAE SME merchants by providing SME’s with revenue-based funding facilities.
Dubai, UAE – 14, August 2024
Aramex, a global leader in logistics and transportation, renowned for its innovative services tailored to businesses and consumers, today announced a strategic partnership with FlapKap, MENA’s leading revenue-based financing platform.
The collaboration aims to support new and existing Aramex merchants, small and medium e-commerce businesses (SMEs) based in the UAE to obtain a fast and flexible funding within 48 hours.
SMEs play a critical role in the global economy, especially in fast-paced economic hubs like the UAE. However, obtaining the necessary capital to scale their ventures remains a significant challenge. In fact, according to the International Finance Corp, SMEs in the UAE represent 90 per cent of total businesses. As a total percentage of GDP, the estimates for rich Mena countries are at approximately 51 per cent contribution from SMEs with employment contribution at 62 per cent. Paradoxically, there is an SME credit gap in excess of US$260 billion in MENA, with only 4 per cent of outstanding loans in the UAE awarded to SMEs. This partnership aims to address this challenge by combining Aramex’s expertise in supporting SMEs with FlapKap’s innovative funding solutions.
Under this landscape, Aramex supports SMEs by offering comprehensive logistics and transportation services, ensuring efficient supply chain management. FlapKap complements this by providing revenue-based financing solutions through its innovative app. This partnership enables SMEs to access working capital financing from FlapKap to meet their inventory, marketing, and operational needs, all while benefiting from Aramex’s reliable logistics support.
Commenting on the partnership, Lour AlMukhaimer, Channel Manager – SMEs Commercial & Partnerships, Retail Outlets at Aramex, said: “FlapKap brings fresh insights into the financial management challenges small businesses face. Our partnership aims to help more businesses streamline their logistics and operational processes, allowing them to focus on securing the necessary funding to scale and meet the increasing demand for their products and services. We believe this collaboration will contribute significantly to the growth and sustainability of the SME sector in the UAE, which is aligned with Aramex’s global commitment to supporting the SME ecosystem in its scale and growth.”
Kunal Harisinghani, FlapKap’s Chief Commercial Officer added: “Our partnership with Aramex is a groundbreaking initiative that will add tremendous value to the SME ecosystem. It’s the first time in the region that a leading logistics solutions provider and an innovative revenue-based funding solution have come together. FlapKap and Aramex share a common goal of empowering SMEs with data-driven growth opportunities. By integrating FlapKap’s solutions with Aramex’s offerings, businesses can unlock significant value through increased inventory purchasing power, marketing optimization, and regional expansion. We are excited about this partnership and are committed to continuously evolving it to drive growth for our valued merchants” .
