Flend Raises US$3 Million To Scale Digital SME Lending Across Egypt

Egypt-based fintech startup Flend has raised US$3 million in a blended seed funding round comprising equity and debt as it accelerates digital lending for small and medium-sized enterprises (SMEs) across the country. 

The equity portion was led by Egypt Ventures, with participation from Egyptian fintech-focused venture capital (VC) firm Camel Ventures, Riyadh-based early-stage VC fund Sukna Ventures, Abu Dhabi-based VC Plus VC, Banque Misr, and regional family offices including El Sewedy and Baalbaki, along with strategic corporate bankers. On the debt side, Flend secured facilities from Egypt's Micro, Small, and Medium Enterprise Development Agency (MSMEDA) and local banking partners. 

Founded by Ahmed Zaki, Nehal Helmy, and Saif Edeen El Bendari in Cairo in 2022, Flend is the first company in Egypt licensed by the Financial Regulatory Authority (FRA) as a digital non-banking financial institution (Digital NBFI) focused on SME lending. The platform integrates with over 20 supply chain platforms across sectors like healthcare distribution, agri-food, manufacturing, e-commerce, retail, and exports to provide short-term working capital loans through embedded finance. 

In an interview with Inc. Arabia, Helmy, who is also the Chief Strategy Officer (CSO),  explained how the founding team’s backgrounds helped them to see key gaps in SME financing in the country. She said that, during her time in development finance and public policy, including roles at the World Bank and Egypt’s Ministry of Investment and International Cooperation, she saw firsthand how vital SMEs are to job creation—and how difficult it remains for many to access financing, especially those operating outside the formal banking system.  

This, Helmy elaborated, informed her approach to Flend’s broader mission and approach to addressing the SME financing gap. “That experience shaped my belief that to truly close Egypt’s $50 billion SME financing gap, we need more than just capital—we need smart infrastructure that meets SMEs where they are, with speed, simplicity, and trust," she explained. 

Helmy also noted that each of Flend's leadership team has distinct expertise that serves the company’s broader purpose, with CEO Zaki bringing over 17 years of experience in banking and credit risk, contributing to the development of Flend’s credit and risk frameworks from the outset, while CTO Dr. Mohamed El Beltagy, who has led artificial intelligence (AI) and optimization projects internationally, designed the company’s proprietary tech stack to support secure and scalable underwriting. Finally, she points to COO Seifeldin Youssef's operational and investment expertise from Egypt’s fintech and startup ecosystem as playing a key role in shaping the company's partnerships and user engagement. 

The executive team's combined background in banking, technology, policy, and operations directly influenced how Flend was structured from the ground up. Drawing on that synergy, Helmy highlighted three core elements that shaped the company’s early trajectory as it set out. “First, from day one, we aligned our technology and risk infrastructure with regulatory standards, ensuring full compliance while maintaining speed and scalability," she said. "Second, our strategic partnerships—with ecosystem players that have deep SME reach and rich data—enabled us to build trust and traction early on. Third, we built a modular, proprietary loan management system, as well as a credit scoring engine, that allows us to serve partners and SMEs in a seamless, application program interface (API)-first manner.” 

Looking ahead, Flend aims to deploy EGP1 billion in SME loans within the next year—a target that reflects both the scale of the opportunity and the company’s confidence in its model. At the heart of Flend’s model is embedded finance, which allows the company to integrate lending into the platforms SMEs already rely on, streamlining access to capital while improving visibility and lowering risk. “While Flend lends exclusively to formal SMEs, we've seen that many of these businesses still struggle to access the capital they need—not because they lack viability, but because they often lack the financial visibility, credit history, or documentation required by traditional lenders,” Helmy said. “This is where embedded finance becomes transformative.” 

Helmy explained that integrating lending into supply chains, logistics platforms, B2B marketplaces, or payments systems enables real-time underwriting using operational data. “It also reduces friction: there’s no need to navigate a separate application process or deal with unfamiliar banking procedures,” she added. “Over the next 2–3 years, embedded finance will be one of the most effective ways to close the SME financing gap in Egypt and the region.” 

While digital lending is helping to unlock capital, Helmy pointed out that access to finance is only one part of the puzzle. “Many SMEs need guidance and support to become investment- and growth-ready,” she said. “A large portion of formal SMEs still struggle with basic financial management, reporting, and compliance—not because they lack potential, but because they often haven’t had the exposure or know-how to formalize their operations effectively.” 

Helmy also emphasized the need for broader ecosystem collaboration to help SMEs navigate regulation, improve financial literacy, and build scalable operations. “These softer—but critical—foundations are often overlooked, yet they directly impact whether a business can grow healthily or not," she said. 

With the new funding, Flend plans to expand its embedded finance partnerships, grow its team, and enhance its technology stack. It is also preparing to introduce new products. “In addition to working capital financing, we’re building out new solutions that support capital expenditure (CapEx) investments—helping SMEs fund longer-term growth assets,” Helmy revealed. “We're also in the process of introducing Sharia-compliant financing products, recognizing the growing demand for ethical and interest-free financial solutions.” 

One of the keys to Flend's credibility among both SMEs and investors from day one, said Helmy, was that it secured licensing from Egypt's FRA early on. “Securing FRA licensing early on sent a strong signal to investors: that we were building for the long term, with governance, compliance, and credibility baked in," Helmy noted, adding that the strategic importance of regulation has been key to boosting the startup’s reach in a market like Egypt. “In Egypt, operating in a regulated environment is essential to building credibility with both SMEs and institutional investors," she said. "It requires early, proactive engagement with the regulator, a deep understanding of evolving frameworks, and a long-term commitment to governance and compliance.” 

While Egypt remains Flend’s primary focus in the short run, Helmy noted that she also sees potential for growth in similar African markets. “The SME financing gap in Egypt is estimated at nearly $60 billion, according to the World Bank," she said. "There’s still a long way to go in terms of closing that gap—especially with the shift toward digital and embedded finance models. We see strong potential for geographic expansion into other high-growth, underbanked markets across Africa—especially where regulatory openness to fintech is accelerating and SME ecosystems are maturing. But our expansion strategy will always be grounded in solving real, structural gaps in access—rather than scaling for its own sake.” 

As more entrepreneurs explore opportunities in digital lending, Helmy shared her advice on what they should keep in mind when building in a regulated and operationally demanding sector. “Build with regulation in mind from day one," she said. "Don’t wait to figure it out later. Whether it’s data security, credit policies, customer protection, or licensing, aligning with the regulatory framework early on will give your business a more solid foundation—and make it easier to scale responsibly.”  

Helmy also stressed the importance of commitment. “Lending is not just about deploying capital—it’s about managing risk, servicing efficiently, and building trust with clients who may be new to non-bank finance," she said. "The market is promising, but it’s operationally intensive. Founders need to be deeply committed to the ecosystem they’re serving—and prepared to grow thoughtfully, not just quickly.” 

Pictured in the lead image are Flend co-founders Ahmed Zaki, Nehal Helmy, and Saif Edeen El Bendari. Image courtesy Flend.