Flash, an Egypt-based fintech focused on cashless payments, just closed a $6 million seed round geared towards improving its product and optimizing customer and business acquisition. The duo of Erik Gordon, a previous worker at Uber, and Sherine Kabesh started the company two years ago. Addition championed this round alongside Flourish Ventures and a couple of angel investors.
Backed by the Central Bank of Egypt (CBE), Flash offers scan-and-pay services through a payment mobile application that caters to businesses and consumers seeking an innovative cashless payment solution. Scan-and-pay, otherwise known as QR code payment, is the act of conducting transactions through a QR code.
Flash customers can transact with merchants by simply integrating their bank card or digital wallet with the fintech app. Scanning the QR code whether in-store or upon the delivery of the items completes the payment. This is beneficial because it eliminates the need for point-of-sale (POS) systems or technology integration. Interestingly, 80% of Egyptians who shop for goods online prefer the cash-on-delivery method mainly because most merchants don’t offer POS payments upon delivery. That is a significant gap that the startup’s “Flash on Delivery” service seeks to fill.
As such, enabling consumers to pay for goods and services by scanning the QR code shown by the merchant’s representative (delivery agent) not only solves a major problem but encourages people to reduce their dependence on cash. This aligns with the apex bank’s financial inclusion roadmap which seeks the expansion of digital financial services, among other things.
Erik Gordon, Flash’s Founder and CEO, revealed that the team was enthusiastic about bringing a contactless payment method to Egyptians.
“Our mobile application removes transactional challenges for businesses looking for an easier solution than the POS. Our goal is to make payments easier, safer, and faster for everyone. We are also excited to be releasing new features to help consumers make better spending decisions,” he said.
Gordon noted that the $6 million investment humbled the team, adding that Flash would leverage the fund to achieve their goal of product development and customer and business acquisition. He also said that the startup would help grow Egypt’s economy through the insights from their seasoned investors.
The CBE also granted Flash a license to operate as a technical payment aggregator in collaboration with Banque Misr. This approval, according to co-founder Sherine Kabesh, will enable the startup to roll out fresh products and widen its digital payment portfolio. This translates into a larger customer base and a stronger national economy.
Read also: Egypt fintech Masroofi raises $1.5 million for enhanced financial inclusion for children
A word from Flash investors
Andrew Miskievev of Addition passed a vote of confidence on Flash, saying that it was revolutionizing the payment scene in Egypt by granting consumers and business access to a simplified transaction process using a secure and user-friendly product. “We look forward to supporting Flash and its leadership team as they continue to accelerate product development, expand customer bases and help promote financial inclusion,” he added.
Similarly, Ameya Upadhyay, a partner at Flourish Ventures, claimed that Flash’s goal of ensuring all Egyptians, merchants and customers alike, enjoy instant payment and remittances, was a “game changer.” Upadhyay highlighted his firm’s pattern of choosing to invest in entrepreneurs that desire a “fairer financial system.” Seeing as Flash fits the profile, it’s no surprise that Flourish chose to support the startup.
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