Bridging the Credit Gap with AI: Kenyan Startup Flowt Raises Seed Funding

A Nairobi-based fintech called Flowt has secured a $550,000 pre-seed round from Delta40 Fund I, Impacc, and Argidius Foundation. The company uses artificial intelligence to transform businesses’ financial records into lender-ready data, aiming to unlock credit for small enterprises that often struggle to access traditional bank financing.

The funding will enable Flowt to expand its lending operations, particularly targeting climate-focused SMEs—businesses that are vital to Africa’s sustainable development but frequently overlooked by conventional lenders due to limited financial history. According to Flowt, many promising companies in this sector operate in a grey area between microfinance and commercial banking, where loan diligence can be costly for smaller amounts.

How Flowt Works

Flowt’s technology analyzes bank statements, M-Pesa transaction data, and accounting records using AI to create standardized financial reports. This allows lenders to quickly assess creditworthiness based on actual cash flow rather than relying on traditional collateral requirements. The company has already issued its first loan facility to GreenBay, a Kenyan firm that refurbishes appliances and solar home systems—demonstrating how Flowt can de-risk lending for businesses with limited track records.

“Funders in Africa often face a trilemma when evaluating small businesses,” explains Elana Laichena, Flowt’s founder. “They either demand collateral, conduct extensive due diligence, or price loans higher to compensate for the information gap. Our solution addresses this root problem by providing clear financial intelligence.”

The financing comes at a critical time, as Africa’s SME credit gap exceeds $330 billion—a significant constraint on economic growth and job creation. With climate technology investments surging across the continent (over $1.5 billion in 2025 alone), Flowt’s focus aligns with both market demand and impact potential.

Beyond Lending: Building Financial Intelligence

Flowt distinguishes itself by offering a dual-pronged approach—providing short-term loans while also selling financial intelligence software to businesses, investors, and lenders. This creates multiple revenue streams and builds a more sustainable business model. The company’s ultimate goal is to create a comprehensive platform that connects climate-focused SMEs with the capital they need to grow while providing valuable data insights along the way.

Founded in 2025 by Laichena, who previously worked on addressing working-capital challenges for agricultural businesses and later at Delta40 Venture Studio, Flowt is targeting a $1 million loan book by year-end 2026—a milestone that would represent significant progress toward closing Africa’s SME financing gap.