Flash Secured $6M Seed Investment In A Funding Round Led By Addition
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Flash, a fintech platform looking to promote financial inclusion in Africa, has raised $6 million in a seed funding round that was led by Addition. The Egyptian fintech offers cashless payment solutions to businesses and customers by giving them access to a scan-and-pay service.
Flash raises $6M in a seed funding round
The recent funding round was led by a venture capital unit known as Addition, which was led by the former executive at Tiger Global, Lee Fixel. The other investors that participated in this funding round include Flourish Ventures and other angel investors. The recent funding round will allow the startup to boost product development, customer and business acquisitions across Egypt.
Flash operates with approval from the Central Bank of Egypt as a technical payment aggregator. This platform now allows customers to make purchases through their phones by linking an existing bank card or digital wallet to the Flash app. Customers can also scan a QR code presented by a seller.
The co-founder and CEO of Flash, Erik Gordon, said, “We’re eliminating the need for cash or carrying cards for our consumers and the POS machine on the merchant side. With QR codes, businesses don’t have to worry about integration setup and maintenance fees, and it’s low tech, so anyone with a camera on their phone can pay that way.”
Flash was founded in 2021, and it provides its payment services through a partnership deal with an Egyptian bank known as Banque Misr. Flash’s co-founder, Sherine Kabesh, said that Flash had obtained license approval and a bank partnership that will strengthen its commitment to creating a cashless ecosystem with new products and a move to digital payments.
Improving the payment system
Online payments have become increasingly popular because of the growing popularity of e-commerce platforms. The “Flash on Delivery” option allows businesses to give their customers access to a QR code that can be scanned during collection.
The company has not disclosed the number of merchants and end customers that are using the platform. However, the fintech has initially revealed plans to serve more than 100 businesses over the next year. Some of its existing customers include Homzmart and Rabbit Mart.
According to the CEO, Flash enables next-day settlements, making it more effective than other digital payment platforms. Gordon said that the cost of businesses operating with Flash will be less with Flash than the other payment platforms.
Gordon also noted that the central bank was making the instant payment network available to third parties, therefore enabling instant settlements. Therefore, the fintech had a long-term plan to conduct instant payment settlements and low transaction costs.
One of the investors at Addition, Andrew Miskiewicz, said that the fintech was transforming the payments industry in Egypt by simplifying the complex transaction processes for businesses and consumers using an application that was safe and easy to use.
The fintech claims that it processes 50,000 transactions, and it is now approaching more than 10 million Egyptian pounds, equivalent to $324,000. The revenue derived by the company from charging a processing fee has increased by 30% month-on-month.
