Kenya-based fintech FlexPay has secured an undisclosed investment from the Cairo Angels Syndicate Fund (CASF), a micro venture capital fund that invests in early-stage startups in the Middle East and Africa.
Touted to be an online and offline payment gateway, FlexPay enables merchants to provide interest-free targeted savings to customers across Africa.
It allows its merchant partners to give their customers the option to pay in instalments for high-value goods and services.
Merchants will be able to integrate FlexPay as a checkout option online or offer in-store to enhance payment flexibility for the shoppers.
FlexPay founder and CEO Richard Machomba said: “We are thrilled to have The Cairo Angels as investors as we plan to grow and scale to more markets in Africa.
“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.”
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In 2019, FlexPay raised its valuation to $25m after raking in an undisclosed sum in a financing round led by a Japanese VC-fund, according to a Kenyan Tribune report at the time.
Prior to that, the firm secured pre-seed funding from Google, Breegafund and TechStars.
Commenting on the investment, Cairo Angels Syndicate Fund CEO Aly El Shalakany said: “FlexPay is our first investment in Africa outside of Egypt. Richard and Johnson are two stellar founders who have built an amazing FinTech platform that flips BNPL on its head by harnessing the power of saving and digitising the deep rooted culture of ‘layway’.”
“We will be supporting FlexPay with their regional expansion plans in other key Africa markets, including Nigeria and Egypt,” Shalakany added.