Through its Cairo Angels Syndicate Fund, the Egyptian group’s investment marks its first in Africa.
Marking their first foray into a booming Kenyan ecosystem and in Africa, The Cairo Angels have invested an undisclosed amount in fintech startup, Flexpay, through its Cairo Angels Syndicate Fund (CASF), a micro venture capital fund launched that looks to back seed and Pre-Series A startups in the Middle East and Africa.
As both an online and offline gateway, Flexpay offers merchants and vendors interest-free targeted savings to customers across the continent, allowing them flexibility in how and when to pay for high-value goods and services. Founded by Richard Machomba in 2017, FlexPay has since set-up shop in Canada, boasting a total of $9 million in investments.
"We are thrilled to have The Cairo Angels as investors as we plan to grow and scale to more markets in Africa,” Machomba said. “As Africa’s first merchant-embedded saving-based purchase experience that rewards customers for saving (Save Now, Buy Later), we aim to solve the un-affordability gap for the large under-banked African population without subjecting them to the debt trap.”
On the part of CASF, CEO Aly El Shakalany and co. see potential for FlexPay to expand to Africa’s largest markets, including the group’s home turf, describing it as “an amazing fintech platform that flips BNPL on its head by harnessing the power of saving and digitising the deep rooted culture of ‘layway’.”
The investment speaks of the growing VC interest in fintech startups across the Middle East, Africa, Pakistan and Turkey, which together struck 108 deals amounting to just under $1 billion in Q1’22. In Africa alone, fintech has been the most prolific sector in terms of investments, accounting for over 45% of all transactions in the same period. Fintech has topped the investment charts across Africa, apart from Egypt, where ecommerce has led the way. Nigeria’s fintech sector has amassed the most VC funding, with Bamboo, Flutterwave and Moove Africa breaking ground in alternative fintech solutions and recording notable deals.
And it’s Nigeria and Egypt that are next in the crosshairs for FlexpPay, as it looks to scale its operations in two of Africa’s biggest markets, while expanding its current team.