Nairobi-based fintech startup Flowt has secured funding from Delta40 Fund I and Impacc. The startup has also secured grant support from the Argidius Foundation to scale its AI-powered lending platform for African businesses.
The company has also issued its first working-capital facility to GreenBay, a Kenyan circular commerce business that sources, refurbishes and sells pre-owned household appliances and solar products. The amount and terms of the facility were not disclosed.
Flowt Uses Business Data to Assess Borrowers
Flowt was founded by Elana Laichena and uses artificial intelligence to assess businesses using financial data they already generate.
“A lender that only lends has to raise capital forever in order to grow,” Laichena said. “The data we build to underwrite a loan is worth something to the business that generated it, and worth something again to the investor trying to find that business.”
Its platform connects to accounting systems and analyses bank and mobile-money records to verify revenue, cash flows and repayment capacity.
Flowt says its financial health tool works with a number of platforms including QuickBooks, Zoho and Odoo. It then uses this to generate more than 20 financial indicators. Its due diligence software also categorises bank and M-Pesa transactions and identifies potential risk signals.
Delta40 said Flowt has tested its platform with more than 15 potential borrowers. Through this, it has identified a prequalified pipeline representing between $1 million and $2 million in loan demand.
The startup is targeting businesses in sectors including green manufacturing, climate-smart agriculture, renewable energy and clean cooking.
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Also Read: Delta40 Raises $20 Million to Support Africa’s First Institutional Venture Studio + Fund Model
