Kenya’s Flowt raises $550,000 as it targets a $1 million loan book
The Nairobi-based company uses artificial intelligence (AI) to analyse financial records, including bank and M-Pesa statements and accounting data, to assess small businesses’ creditworthiness. It says that many companies are locked out of traditional lending because banks lack reliable financial history.
Kenyan fintech startup Flowt has secured a $550,000 pre-seed funding round from Delta40 Fund I, Impacc, and Argidius Foundation to expand its lending services to small climate-focused businesses with limited access to traditional bank credit. Flowt, based in Nairobi, utilizes AI to convert businesses' financial records, such as bank and M-Pesa statements and accounting data, into lender-ready data.
The company aims to address the $330 billion financing gap for African SMEs, most of which fall between microfinance and commercial banking tiers. Flowt's software analyzes transaction information from accounting systems and bank records, generating standardized financial data to assess creditworthiness. As climate technology gains traction in African venture investment, Flowt differentiates itself by focusing on climate-related SMEs and building financial intelligence software alongside its lending business.
The startup plans to issue its first loan facility to GreenBay, a Kenyan company refurbishing and reselling household appliances and solar home systems.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
