Fintech company Flow48, founded in 2022 and operating across the GCC (Gulf Cooperation Council) and Africa, including the UAE, Saudi Arabia and South Africa, has raised $69 million in funding to expand its operations and invest in start-ups and small and medium-sized enterprises (SMEs).
The funding round, a mix of debt and equity financing, was led by venture capital firm Breega, with additional investments from 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, +VC and others.
Flow48 offers two primary financing products: revenue-based financing and invoice-based financing. According to the company, revenue-based financing enables start-ups and SMEs to raise capital without giving up ownership or taking on fixed debt. Instead, businesses receive funding in exchange for a percentage of future revenue.
The company launched operations in South Africa in May 2024 and has since deployed R25 million in capital.
$10m for SA market
Altesh Baijoo, MD (SA) at Flow48, confirmed that at least $10 million of the $69 million raised will be directed towards the South African market.
“We plan to deploy between R15 million and R20 million per month on average until the end of Q1 2026, to SMEs incorporated and operating in South Africa,” Baijoo said.
While Flow48 serves businesses across various sectors, it has specific criteria for the SMEs it would readily support. "The ideal SMEs are those with annual revenue exceeding R5 million, have been in operation for over 12 months and possess the capacity to service the debt they are requesting. Borrowers can apply for funding ranging from R100 000 to R5 million, with repayment terms up to six months,” Baijoo explained.
Flow48 is focused on addressing the funding gap in the rapidly growing SME sector, which remains underserved by traditional financial institutions.
“Banks fail to adequately meet the debt capital needs of SMEs,” Baijoo noted. “While over 90% of SMEs have bank accounts, fewer than 15% access debt funding from banks, excluding overdrafts. Alternative lenders have not fully addressed the SME funding gap, which is estimated at between $80 billion and $100 billion.”
To improve its offerings, Flow48 plans to enhance its platform by incorporating alternative data sources and advanced risk assessment tools to deliver more tailored financial solutions to SMEs.
Building a competitive edge
Baijoo highlighted that Flow48 is focused on building a competitive moat around its technology infrastructure, which is designed to collect and analyse unique data to deliver accurate credit risk assessments and inform capital allocation decisions.
“Credit ratings, including synthetic credit ratings, are an early product offering aligned with our productisation objectives,” Baijoo said. “In the future, we aim to develop solutions that can acquire and analyse the unique data we collect, providing insights for enhanced fraud assessments, optimising fund administration and improving treasury management.”
Flow48 plans to deploy R185 million in South Africa by the end of Q1 2026. The company also aims to become one of the top three direct fintech lenders in the region by value of loans originated within the next three years.
“There are a few alternative lenders in South Africa, but we believe there’s room for competition, especially given that the total addressable market is growing. We are also confident that our technology-led solutions are sufficiently differentiated from our competitors,” Baijoo added.
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