Kayko Secures $1.2M Seed to Expand SME Financing Access

Kayko Co-Founders: Crepin Kayisire and Kevin Kayisire

Kigali-based fintech Kayko has successfully secured $1.2 million in seed funding to advance its mission of digitizing Rwanda's small and medium-sized enterprises (SMEs) and unlocking access to formal credit. The investment round was supported by a consortium of notable backers, including Burrow Capital, the Luxembourg Development Agency (LuxDev), Hanga Ignite by BRD, and develoPPP Ventures. This capital injection is poised to help the company bridge the significant financing gap for informal merchants by leveraging real-time business data.

Addressing a Critical Financial Gap

Small businesses across Rwanda form the backbone of the national economy but face a persistent multi-billion-dollar financing gap that severely stifles their growth potential. Traditional financial institutions often struggle to serve this vital segment due to a lack of formal financial records and the tangible collateral typically required for loans. This systemic challenge leaves millions of entrepreneurs unable to secure the capital needed to expand operations, hire staff, or invest in crucial inventory.

A Data-Driven Solution for SME Growth

Founded in 2021 by brothers Crepin and Kevin Kayisire, Kayko emerged from a university capstone project to become a comprehensive micro-ERP platform tailored for local merchants. It currently provides over 8,500 SMEs with essential tools for daily bookkeeping, real-time inventory management, and simplified tax compliance visibility. The platform is strategically designed to become the central system of record, capturing the authentic, day-to-day flow of business activity for small merchants.

The company's core innovation lies in its ability to translate this raw operational data into a trusted financial profile that lenders can understand and act upon. By creating a verifiable digital footprint of sales, expenses, and compliance history, Kayko allows banks to assess creditworthiness with greater accuracy and without relying on conventional collateral. This data-driven approach effectively de-risks lending to the informal sector, unlocking previously inaccessible financial products and working capital for deserving businesses.

Strategic Investment for Future Expansion

The $1.2 million seed funding represents a strong vote of confidence in Kayko's model from a diverse group of international and local investors. The participation of venture firms like Burrow Capital alongside development-focused partners such as LuxDev highlights the platform's dual potential for commercial success and profound socioeconomic impact. This strategic backing provides not only the necessary capital but also the network and expertise required for the company's ambitious next growth phase.

Kayko will strategically allocate the new funds toward strengthening its technological infrastructure to support a rapidly growing user base and enhancing its data analytics capabilities. A key priority is the continued development and refinement of its proprietary credit scoring models to further improve the accuracy and fairness of lending decisions. The capital will also be instrumental in forging deeper partnerships with financial institutions, scaling the availability of data-driven loans across the country.

With this new funding, Kayko is well-positioned to accelerate its impact on Rwanda's SME landscape, transforming everyday business transactions into tangible financial opportunities for entrepreneurs. The company's innovative approach of digitizing informal commerce to unlock formal credit directly addresses a fundamental barrier to sustainable economic development in the region. As it continues to scale its operations and partnerships, Kayko stands to become a pivotal player in fostering a more inclusive and dynamic financial ecosystem.

Source: Startup Researcher