Kigali-based fintech startup Kayko has raised $1.2m in seed funding to digitise the operations of Rwanda’s informal small businesses and provide the data infrastructure necessary for formal lending.
The round saw participation from Burrow Capital, the Luxembourg Development Agency (LuxDev), Hanga Ignite (a facility of the Development Bank of Rwanda), and develoPPP Ventures.
The capital injection comes at a time when East African fintechs are increasingly moving away from pure-play payments and toward “data-as-a-service” models that target the massive financing gap for small and medium-sized enterprises (SMEs). In Rwanda alone, formal MSMEs face an estimated annual finance gap of over $1.2bn.
The “Invisible” Business Problem
Most small businesses in African markets operate in a data vacuum. While cash flows, inventory moves, and taxes are often paid, the lack of digital records means traditional banks cannot verify the creditworthiness of these entities.
“Millions of SMEs across Africa run their businesses every day, but have no usable financial data to grow, borrow, or scale,” the company noted in its announcement. This lack of visibility effectively renders these businesses “invisible” to the formal financial sector.
Kayko’s solution is a micro-ERP (Enterprise Resource Planning) platform. It allows merchants to manage:
- Daily bookkeeping and cash flow tracking.
- Inventory management.
- Tax compliance signals.
By capturing this real-time activity, Kayko creates a “data layer” that financial institutions can use to score credit risk without requiring traditional collateral.
From Capstone Project to 8,500+ Merchants
The startup was founded in 2021 by brothers Crepin and Kevin Kayisire, both graduates of the African Leadership University (ALU) in Kigali. The idea originated as a final-year capstone project, reportedly inspired by their mother’s inability to secure a bank loan for her catering business due to a lack of formal financial statements.
Since its launch, Kayko has seen steady adoption in Rwanda:
- 8,500+ SMEs now use the platform daily.
- The user base spans neighborhood kiosks, salons, and retail shops.
- The platform has evolved from a simple bookkeeping tool into a system of record for tax and inventory.
The Path to Credit Scoring
The $1.2m seed round marks a shift in Kayko’s strategy from pure digitisation to financial intermediation. The startup plans to use the funds
- Strengthen technical infrastructure to handle higher transaction volumes.
- Develop proprietary credit scoring models based on the merchant data it already aggregates.
- Facilitate working capital loans by partnering with banks and microfinance institutions.
By positioning itself as the bridge between informal business activity and formal capital, Kayko is competing in a crowded but high-potential field that includes regional players like Wasoko and Kyane, though its specific focus on the Rwandan regulatory and tax environment gives it a localized advantage.
What’s Next?
The company’s immediate goal is to turn “everyday business activity into real access to capital.” As Rwanda pushes toward its National Fintech Strategy (2024–2029), which aims to position Kigali as a regional financial hub, Kayko’s ability to bring informal merchants into the digital fold will be a key metric of its long-term viability.