Kenyan startup Flowt has secured an undisclosed pre-seed funding round to expand its AI-driven financial intelligence platform and improve access to working capital for climate-smart businesses across Africa.
The Nairobi-based startup, founded by Elana Laichena, is using artificial intelligence to analyse financial records and turn business data into information that lenders can use when assessing small businesses. The approach could help address one of the major challenges facing smaller enterprises: limited access to affordable financing because traditional lenders often have insufficient information to assess their financial position and repayment capacity.
The funding was provided by Delta40 Fund I, Impacc and Argidius Foundation. Flowt plans to use the capital to expand its operations in Kenya and further develop its financial intelligence platform, with a focus on smaller climate-smart businesses.
The company has already put the model into practice through its first financing facility for GreenBay, a Kenyan circular commerce business that refurbishes and resells pre-owned and second-life appliances, including solar equipment.
Using Financial Data to Improve Lending Decisions
Flowt’s platform is designed to give lenders a clearer picture of how a business operates by analysing financial information that the business already generates. This reduces the need to depend mainly on physical collateral or lengthy due diligence processes.
For GreenBay, Flowt connected to its Odoo accounting system and used AI and machine-learning tools to analyse bank statements, financial activity, cash movements and repayment capacity. According to Flowt, the assessment was completed within days, compared with the months that traditional small-business lending can sometimes require.
“Funders in Africa have three bad options when they look at a small business,” Laichena said.
She explained that lenders may demand collateral, spend months conducting due diligence or offer financing at interest rates that are difficult for smaller businesses to afford. Flowt’s approach instead uses verified transaction history to understand a company’s working-capital requirements and ability to repay.
This can make financing decisions more data-driven while giving businesses a better opportunity to access funding based on their actual financial performance.
GreenBay Financing Supports Inventory Growth
For GreenBay, access to working capital is directly linked to its ability to grow. The company sources, tests, refurbishes and resells pre-owned and second-life equipment to households and small businesses. Its growth has been limited by how much inventory it can afford to hold at any given time.
The financing provided through Flowt has allowed GreenBay to purchase and sell more inventory. The company has also begun making repayments through its Flowt wallet, while a separate account is used for purchasing and collections. This keeps those funds separate from operating expenses and gives lenders greater visibility into the movement of business cash.
The GreenBay facility demonstrates how improved access to working capital can support businesses operating in the circular economy and climate-smart sectors. For companies such as GreenBay, additional financing can translate directly into more inventory, more sales and greater capacity to serve customers.
Flowt’s next phase will focus on expanding across Kenya while continuing to build its financial intelligence platform. By improving how lenders understand smaller businesses, the startup aims to help close a financing gap that continues to restrict growth for many climate-smart enterprises in Africa.
