Egypt’s Cairo Angels Syndicate Fund (CASF) has invested an undisclosed amount in a Kenya-based fintech FlexPay, marking the first investment for CASF in Africa.
Founded in 2016 by Richard Machomba, FlexPay is an online and offline payment gateway that allows merchants to offer interest-free targeted savings to their customers in Africa. Through FlexPay, merchants give their customers the freedom to choose how and when to pay for high-value goods and services. Shoppers get to spread the cost over time (pay in installments) increasing flexibility and spending power. Merchants can choose to integrate FlexPay as a checkout option online or offer offline in-store flexibility. They have managed to grow their GMV 5x over the past year.
The Cairo Angels is Egypt’s first formal angel investment network; investing in and supporting early-stage startups in Egypt and across the MENA region. Established in 2012, Cairo Angels convenes regular investment meetings to review pre-selected potential investees that meet the Cairo Angels investment criteria. Members may join virtually or physically in either Cairo or London.
While angels make their own investment decisions, Cairo Angels facilitates due diligence for opportunities that receive interest from investors, negotiates terms and finalizes deal closing. Post-investment, the Cairo Angels can also provide portfolio management services for its investors. Angels invest their personal money in return for a minority equity stake in the business, and collectively make investments that range between 250K to 2M Egyptian Pounds per Company.
“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.” Stated Richard Machomba, Founder and CEO of FlexPay.
“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 digitizing the deep-rooted culture of ‘layway’. We will be supporting FlexPay with their regional expansion plans in other key African markets, including Nigeria and Egypt” said Aly El Shalakany, CEO of the Cairo Angels Syndicate Fund.
So far, the Cairo Angels Syndicate Fund has invested $2.8 Million in 28 Startups across six cities.
