Flowt Raises KSh 71.2M ($550,000) to Expand Small-Business Lending

Kenyan fintech Flowt has raised KSh 71.2M ($550,000) in pre-seed funding to expand lending to small businesses, TechCabal reported.

The startup, led by founder Elana Laichena, aims to grow its loan book to KSh 129.45M ($1M). Its software assesses business financial records and cash flows, seeking to serve firms that struggle to meet conventional lenders' requirements.

By using AI software to analyse daily cash flows and transaction records directly, fintechs like Flowt aim to assess creditworthiness faster and offer structured funding to help small firms manage inventory and cash flow.

For suppliers, the working-capital problem is also visible in Quickmart’s use of supplier financing.

How does the technology work?

Flowt’s core platform integrates with a business's existing financial record-keeping tools, using machine learning models to analyse revenue patterns, transaction history, and overall cash health.

Instead of requiring fixed assets like land title deeds or car logbooks as security, the algorithm determines loan limits based on verified daily cash flow. This approach allows small enterprises to access short-term working capital loans directly to buy inventory, restock supplies, or manage operational expenses without navigating traditional paper-intensive banking procedures.

Why are investors betting on SME credit?

Venture capital interest in African fintech has increasingly shifted from broad consumer payments toward business-facing financial infrastructure and credit solutions. Small businesses account for the vast majority of employment across East Africa, yet the International Finance Corporation estimates a multi-billion-dollar trade financing gap for small enterprises in developing markets.

Early-stage investors are betting that software platforms capable of solving the SME credit risk puzzle can build defensible, revenue-generating businesses. By focusing on automated risk assessment and credit disbursal, startups like Flowt aim to capture market share in a sector where demand for working capital consistently exceeds supply.

What comes next?

With KSh 71.2M ($550,000) in new pre-seed backing, Flowt’s immediate objective is expanding its active lending book to KSh 129.45M ($1M).

The startup’s growth trajectory will depend on its software's ability to keep non-performing loan rates low while scaling credit access to small business clients across Kenya. As digital record-keeping tools gain wider adoption among local merchants, AI-driven credit scoring is expected to become an increasingly competitive segment within the regional fintech ecosystem.