Rwandan fintech startup Kayko has successfully raised $1.2 million in seed funding to expand its innovative data-driven platform designed specifically for small and medium-sized businesses (SMEs). Founded in 2021 by brothers Crepin and Kevin Kayisire, Kayko offers a comprehensive point-of-sale and business management system that empowers SMEs to efficiently process sales, manage inventory, track expenses, handle tax obligations, and accept various payments. A key feature of the platform is its ability to capture daily business activity and transform it into structured, usable financial data.

According to the company, over 8,500 SMEs across Rwanda are currently utilizing Kayko for essential functions such as bookkeeping, inventory management, and ensuring tax compliance. Kayko highlights that many businesses operate actively on a daily basis but often lack proper financial records, a critical impediment that limits their ability to access much-needed credit or effectively scale their operations. The recent seed funding round saw participation from a diverse group of investors, including Burrow Capital, the Luxembourg Development Agency, and Hanga Ignite by BRD and develoPPP Ventures.

The startup plans to strategically deploy the newly acquired funds to bolster its technological infrastructure, significantly expand its data capabilities, and develop sophisticated credit scoring and lending tools. These new tools will be built upon the foundation of real transaction data collected through their platform. The founders envision Kayko functioning as a micro enterprise resource planning (ERP) system and a vital data layer for small businesses, structuring sales and expense data. By providing this structured data, Kayko aims to enable financial institutions to conduct more accurate assessments of SME risk, thereby facilitating the provision of working capital directly tied to actual business performance.

Access to finance remains a significant challenge for SMEs across Africa, where many businesses operate informally or rely heavily on cash transactions. Traditional banks frequently encounter difficulties in assessing risk due to the limited availability of reliable financial records, even when businesses demonstrate active and profitable operations. Fintech platforms like Kayko are critically addressing this gap by embedding essential financial tools directly into the daily operational workflow of businesses. By meticulously capturing sales, inventory, and tax data at the point of activity, these systems generate a crucial digital trail that can substantiate credit decisions. This innovative approach effectively shifts lending paradigms from traditional collateral-based models towards more dynamic cash-flow-based assessments.

Rwanda has strategically positioned itself as an ideal testing ground for SME-focused fintech innovations, thanks to its robust digital public infrastructure and proactive governmental support for business formalization. As an increasing number of SMEs embrace and adopt digital tools, lenders gain enhanced visibility into their business performance and financial health. The substantial seed funding flowing into SME data platforms underscores a growing investor interest in business models that seamlessly link software adoption with improved financial access. Companies capable of translating operational data into tangible lending outcomes are poised to play a central role in expanding credit access to small businesses, while simultaneously managing associated risks more effectively.