Kenyan Fintech Flowt Raises $550,000 to Fuel SME Lending

A Nairobi-based fintech startup called Flowt has secured a $550,000 pre-seed funding round from Delta40 Fund I, Impacc, and Argidius Foundation. The company uses artificial intelligence (AI) to transform businesses’ financial records into lender-ready data, particularly targeting small climate-focused enterprises that often struggle to access traditional bank credit.

Addressing the SME Credit Gap with AI

Flowt’s platform analyzes various financial data points – including bank statements, M-Pesa transaction history, and accounting records – to assess creditworthiness. According to founder Elana Laichena, many businesses are excluded from lending because banks lack reliable financial information. Flowt aims to solve this by providing standardized financial intelligence that makes these businesses more attractive to lenders.

“Funders in Africa have three bad options when they look at a small business,” Laichena explained. “They can demand collateral, conduct lengthy due diligence, or price loans higher to compensate for limited information. All three stem from the same problem: a lack of trustworthy financial data.”

The startup has already issued its first loan facility to GreenBay, a Kenyan company that refurbishes appliances and solar home systems. Flowt analyzed GreenBay’s accounting system and bank statements in just days to assess cash flow and repayment capacity.

Filling a Critical Financing Need

Flowt is entering a competitive market with other lending technology startups like 4G Capital, Pezesha, and Numida. However, its focus on climate-related SMEs and its integrated financial intelligence software sets it apart.

The company estimates that the financing gap for small businesses in Africa exceeds $330 billion, with many falling between microfinance and commercial banking while still being too large to qualify for alternative lending programs.

Future Plans & Impact

Flowt is targeting a $1 million loan book by the end of 2026 and plans to sell its financial intelligence software to businesses, investors, and lenders. The company’s approach aligns with growing investor interest in climate technology, which accounted for over 40% of venture funding on the continent in 2025.

Flowt’s commitment to solving real-world problems extends beyond its lending operations. Laichena previously ran a sustainable energy company and later worked in financial advisory before founding Flowt at Delta40 Venture Studio, demonstrating a deep understanding of both entrepreneurial challenges and financing solutions.