KIDAFTARI ACCOUNTING

AIDING SMEs ACCESS CREDIT AND MANAGE THEIR PETTY CASH

MSMEs are vital to global economic development, creating over half of all employment and contributing up to 33% of GDP in African economies (IFC 2013). Despite generating the majority of formal jobs in the African landscape, MSMEs face significant constraints to growth with access to credit being a major challenge. Additionally, 46% of MSMEs in Kenya close within a year of founding (Central Bank of Kenya (CBK) 2017). This is a challenge worth solving. 

In Kenya, financial institutions require MSMEs to provide collateral and evidence of financial records before providing credit. In the absence of a proper bookkeeping system, MSMEs find it difficult to access credit. 

In 2020, around 67.9% of Kenyan MSMEs had no access to credit due to factors like lack of collateral and strict loan application processes. Only 11.2% of MSMEs had received formal credit, while others relied on informal sources or personal savings for financing. Survey by the Kenya National Bureau of Statistics (KNBS)and the CBK. According to the MSME Survey, MSMEs in Kenya employed approximately 15.87 million people in 2020. This represented about 81.1% of total employment in Kenya

While acknowledging the needs of MSMEs to manage their finances, access credit through proper record keeping, and make informed financial decisions, overseas bookkeeping vendors failed to provide effective solutions due to certain key shortcomings. Their offerings were prohibitively expensive, lacked an appreciation for petty cash management, lacked localized support, and were not fully adapted to the unique economic landscape of Africa. 

As such, it is imperative to recognize the importance of developing financial tools that are tailored to the specific needs and realities of the African context, and that are affordable and accessible to MSMEs. By doing so, we can empower MSMEs to better manage their finances, access credit, embrace digitization, manage their petty cash expenses and make informed decisions to support their growth and success.

Kidaftari was founded with a deep understanding of the challenges faced by MSMEs in accessing credit due to poor financial management. To address these challenges, our founder, Daniel, recognized the need for a system that was affordable, innovative, and easy to use. Drawing on his experience as a consultant with leading-global bookkeeping systems (SAGE&SAP), Daniel saw a gap in the existing systems, particularly in terms of affordability, cloud-based functionality, need for petty cash management, simple user interface, payment integration, and innovativeness. He sought to bridge the gap by providing a world-class robust system that is affordably accessible to all MSMEs in Kenya and beyond. 

Driven by his passion for driving change and empowering MSMEs, Daniel made the bold decision to learn coding and develop a solution that would meet the needs of MSMEs in an affordable and accessible way. The result was Kidaftari, a system that embodies the values of rote resilience and discipline, and that is a true testament to our commitment to providing innovative and effective petty cash management, financial and bookkeeping solutions for MSMEs in Kenya and beyond. 

Kidaftari is a web-based bookkeeping and financial recording software that incorporates digital payment and a petty cash manager. 

Kidaftari's affordable, cloud-based, and easy-to-use bookkeeping system is designed to enable MSMEs to easily and accurately record their financial transactions, generate financial reports, manage their petty cash and track their business performance. The system is fully integrated with payment platforms such as MPESA, making it easy for MSMEs to manage their payments and access credit based on their transaction data.

This cutting-edge system boasts a built-in wallet and includes a number of modules that have been carefully created to meet different business demands. These modules include, among others, those for manufacturing, material resource planning, expense management, warehousing, branching, transfers, Unit of Measure, POS, CRM, inventory management, project costing, SACCO(cooperatives) module, Player management, multi-currency, financial management, auto-reorder, billing, warehousing, branching, stock transfers among others. 

Kidaftari accounting offers an effective solution for MSMEs struggling with petty cash management, which can result in significant financial losses due to errors during reconciliation such forgetfulness, manipulation and misappropriation. Inadequate separation of personal expenses from business expenses further exacerbates the issue. The digital wallet, hosted by MPESA, is accessible to most MSMES in Kenya and can be scaled for wider adoption as mobile-based digital payments gain popularity in Africa. 

Transactions made from the wallet are immediately recorded and reports can be generated on petty cash usage, providing greater managerial control and a strong measure of financial performance. System administrators can also allocate amounts to different users and monitor their usage. This online-based solution can be used in field operations, streamlining petty cash management processes and mitigating financial losses for MSMEs. With future strategic partnerships with lending institutions, Kidaftari's wallet may offer overdraft facilities to MSMEs for operational purposes. 

By using Kidaftari, MSMEs can demonstrate financial stability to financial institutions, which will improve their chances of accessing credit and insurance. Kidaftari's system is designed to be accessible to all MSMEs in Kenya and beyond, including those who may not have a background in finance or bookkeeping.

With Kidaftari, MSMEs can also access financial education resources, empowering them to make informed financial decisions and grow their businesses, the founder plans to start free YouTube accounting classes. Our commitment to innovation, affordability, and ease of use makes Kidaftari the ideal solution for MSMEs in Kenya and beyond, helping them to overcome the challenges of accessing credit, alleviating poverty and driving economic growth.

Kidaftari's digital collateral offers MSMEs a groundbreaking solution to the problem of securing operating loans with traditional collateral. By utilizing e-wallet financial transaction data as collateral, business owners can access credit and grow their businesses without having to worry about the lack of conventional security. The loan facility, which is non-withdrawable and spent only from the e-wallet, can only be used to pay suppliers and cover business expenses, helping entrepreneurs separate personal and business expenses. With this innovative approach to collateral, Kidaftari is revolutionizing the lending industry and providing practical solutions to the financial challenges facing MSMEs

Kenya has embraced technology with high internet penetration rates and widespread mobile usage. As a result, digital payments have become increasingly popular, with many Kenyans using mobile money to make transactions. However, the government's push to increase the tax bracket has resulted in many small and medium-sized enterprises (MSMEs) in Kenya struggling to keep up with the financial demands of running a business. The majority of people employed by MSMEs in Kenya are youth and women, who are often underserved and face unique challenges in accessing financial services.

Many MSMEs in Kenya cannot afford expensive bookkeeping software and instead rely on informal means of bookkeeping, leading to a struggle to keep track of their finances and make informed business decisions. This poses a challenge, especially for managing their petty cash, which is a significant concern for many MSMEs. If not well managed, petty cash management can result in losses, leading to a negative impact on the business's overall financial performance.

Kidaftari is a local and affordable bookkeeping software designed specifically for MSMEs in Kenya. The software provides MSMEs with a simple and effective way to manage their finances, including their petty cash, and increase their credit worthiness to lending institutions. The software is easy to use, even for those with limited computer skills.

Kidaftari's primary objective is to alleviate poverty and promote financial inclusion by helping MSMEs grow and thrive, creating jobs and boosting the economy. By enabling MSMEs to keep better records, Kidaftari helps them make more informed business decisions, leading to improved profitability. MSMEs can identify areas where they can cut costs and increase revenue, leading to better financial management.

Kidaftari's solution also helps MSMEs manage their petty cash. Petty cash management is crucial to the financial success of MSMEs. It helps businesses to manage their day-to-day expenses effectively and keep track of their financial transactions. If not well managed, petty cash management can result in losses that negatively impact the business's financial performance.

Kidaftari enables MSMEs to manage their petty cash effectively. The software allows MSMEs to record all petty cash transactions accurately, keeping track of all expenses and ensuring that all transactions are accounted for. This helps MSMEs to monitor their cash flow, enabling them to make informed business decisions.

In addition, Kidaftari helps MSMEs increase their credit worthiness to lending institutions. The software allows MSMEs to keep accurate records of their financial transactions, demonstrating their credit worthiness to lending institutions. This helps MSMEs access credit facilities, enabling them to grow their businesses further.

Kidaftari is a much-needed solution that will help MSMEs in Kenya to succeed and thrive in an increasingly competitive business environment. By providing a simple and affordable way to manage finances, including petty cash management, Kidaftari promotes financial inclusion, alleviates poverty, and boosts economic growth. The software is an essential tool for MSMEs, enabling them to increase their credit worthiness to lending institutions, manage their petty cash effectively, and make informed business decisions that lead to improved profitability.

Kidaftari was founded with a mission to provide affordable and accessible bookkeeping solutions for MSMEs in Kenya and beyond. The driving force behind the company is Daniel Abok, Group CEO, Founder and a seasoned consultant with over 8 years' experience working with systems such as SAGE and SAP.

Despite the majority of the business landscape being made up of MSMEs, available bookkeeping systems were prohibitively expensive and didn't meet the specific needs of the Kenyan economy. Recognizing this gap and driven by a compelling need to contribute positively to society, Daniel decided to develop a solution that would be both affordable and accessible to MSMEs.

What sets Kidaftari apart is Daniel's unique background and skillset. With extensive knowledge in cyber security, front and back-end software engineering, being an ACCA trained accountant with a degree in mathematics and computer science, Daniel had the technical expertise needed to develop a world-class bookkeeping system.

Despite not having a coding background, Daniel taught himself how to code and engaged with the MSME community constantly during his time as a consultant. He saw firsthand the challenges MSMEs faced and sought to develop a system that was guided by their feedback and needs.

Kidaftari's design and pricing model have been tailor-made to meet the economic position of most MSMEs, making it an affordable and effective tool for MSMEs. As Kenya pushes for financial inclusion and embraces technology, Kidaftari is poised to make a significant impact in supporting MSMEs to manage their finances, access credit and make informed decisions to support their growth and success.

Daniel's passion for driving change and empowering MSMEs, particularly women and youth who are disproportionately affected by poorly performing MSMEs, is the driving force behind Kidaftari's founding story. By delivering an impactful and meaningful product to the MSME community, Kidaftari is poised to make a significant contribution to the economic development of Kenya and beyond. 

Kipruto Rugut, co-founder of Kidaftari Accounting, brings a unique and valuable set of skills to the team. With a background as an aviation specialist, Kipruto has extensive experience in flight operations management, project management, and is a pilot and an educator. However, his passion for making a difference in society led him to seek out opportunities to contribute to the economic growth of his community.

In 2020, Kipruto met Daniel Abok and immediately noticed that they shared similar life values and principles in character. After learning about Kidaftari and its mission, Kipruto decided to join the team in mid-2022, bringing his skillset to help Kidaftari extend its wonderful solution to more youth, and women.

As someone who has worked in the humanitarian front across Africa, Kipruto has seen firsthand how many youth and women face economic challenges. He believes that Kidaftari can provide direct benefits to these groups through increased access to credit, petty cash management, job creation, poverty alleviation, and economic growth. With his daring move to join Daniel and the Kidaftari team, Kipruto is committed to making a meaningful impact on his community.

Kidaftari currently has 50 paying organizations across various industries as listed below 

Manufacturing  - 2 clients 

Real Estate -  2 clients 

Hospitality - 9 clients 

Retail & distribution - 20 clients

Education - 2 clients 

Security & Intel - 1 client 

NGOs - 1 client

Energy - 1 client 

SACCOs & Associations - 1 client 

Marketing -  1 client 

Health - 3 clients 

Financial Services - 5 clients

Building and Construction - 2 clients 

Kidaftari Accounting is a Fintech startup that provides cloud-based accounting and bookkeeping services to small and medium-sized businesses. As a young and innovative company, Kidaftari Accounting can benefit greatly from participating in Solve's nine-month support program and receiving access to over $1 million in funding, grants, and investments. In addition, the startup can leverage the program's powerful network of impact-minded leaders to gain exposure, receive coaching and strategic advice, and perhaps get media attention too.

Product marketing and promotion are critical aspects of any business, and Kidaftari Accounting is no exception. The nine-month support program provides an excellent opportunity for the startup to showcase its product to potential customers and investors. During the course of the support program and other social engagements, Kidaftari Accounting can reach a broad audience and present its value proposition in a compelling manner. Moreover, the program can help Kidaftari build relationships with industry experts, influencers, and thought leaders who can endorse and promote Kidaftari Accounting's services to their followers and networks.

Access to funding, grants, and investments is a significant advantage for any startup, particularly for those in the Fintech sector. With over $1 million available through the program, we can also promote our brand, acquire an office space, and enhance our marketing activities. This funding will enable us to stay ahead of the competition, weather market turbulence, and position ourselves as a long-term player as an MSME industry partner.

Joining a powerful network of impact-minded leaders is another significant benefit for Kidaftari Accounting. The program's network comprises experienced entrepreneurs, investors, and industry experts who can offer valuable insights, advice, and mentorship. By engaging with this network, Kidaftari Accounting can access new markets, explore strategic partnerships, and develop new products and services that meet the needs of the MSMSE sector, youth and women.

Coaching and strategic advice from experts are crucial for startups like Kidaftari Accounting, especially during the early stages of their development. The program can provide access to seasoned professionals who can guide the startup's founders through various challenges, including product development, marketing, customer acquisition, and fundraising. This coaching can help the Kidaftari avoid common pitfalls, make informed decisions, and stay focused on its long-term goals.

Finally, gaining exposure in the media is essential for building brand awareness and credibility in the marketplace. MIT Solve can help Kidaftari Accounting secure profiles on its website, get featured in MIT Solves networks and in leading online business publications and media outlets. This exposure can enhance the Kidaftari's reputation, attract new customers, and position it as a thought leader in the Fintech industry helping MSMEs grow. 

Kidaftari Accounting is an innovative solution that addresses the challenges faced by SMEs in managing their finances, especially petty cash management, improving creditworthiness, and using digital collateral.

Petty cash management is critical in running an SME, as it allows them to make small purchases and transactions without an error-prone reconciliation process. Poorly managed petty cash can lead to financial losses hindering growth. Our innovative approach to petty cash management includes providing real-time tracking and monitoring of petty cash transactions, which helps businesses to avoid fraud, errors, and discrepancies. By automating this process, Kidaftari Accounting helps SMEs to save time, reduce costs, and improve accuracy.

Improving creditworthiness is another significant challenge that SMEs face. Access to credit is essential for business growth and expansion, but SMEs often struggle to get loans due to poor credit scores, lack of collateral, and inadequate financial records. We address this challenge by providing a bookkeeping solution that helps SMEs to keep accurate and up-to-date financial records. These records can be used as evidence of financial stability and creditworthiness when applying for loans or other forms of financing. As a result, SMEs can increase their chances of getting loans and other financial support.

The use of digital collateral is a relatively new concept in the world of finance. Digital collateral refers to assets that are stored digitally and used as collateral for loans or other forms of financing. Kidaftari Accounting's innovative approach to digital collateral involves using digital financial records as collateral for loans. By providing SMEs with a digital bookkeeping solution, Kidaftari Accounting enables them to generate financial records that can be used as collateral for loans. This approach to digital collateral is not only innovative but also has the potential to transform the market by making it easier for SMEs to access financing.

Our innovative approach to petty cash management, improving creditworthiness, and using digital collateral has the potential to catalyze broader positive impacts in the market. By providing SMEs with an affordable and accessible bookkeeping solution, we promote financial inclusion thus empowering SMEs to grow. This, in turn, can lead to job creation, economic growth, and poverty reduction.

Our approach to digital collateral has the potential to change the market by making it easier for SMEs to access financing. Traditionally, collateral has been a significant barrier to SMEs accessing financing, but with digital collateral, SMEs can use their financial records as collateral, which is a game-changer. Our innovative approach to digital collateral can encourage other players in the market to adopt similar approaches, leading to a more inclusive and accessible financial system.

Our innovative approach to petty cash management, improving creditworthiness, and using digital collateral sets us apart from other solutions in the market. By addressing critical challenges faced by SMEs, we promote financial inclusion, empowering SMEs to grow, and catalyzing broader positive impacts in the market. With its potential to change the market by making financing more accessible to SMEs, Kidaftari Accounting is a game-changer in the Fintech industry.

Kidaftari Accounting has a clear mission to help MSMEs in Kenya and beyond by improving access to credit, improving petty cash management, promoting business sustainability, creating jobs, and empowering women and youth entrepreneurs. To achieve its impact goals, the company has set both short-term and long-term objectives.

In the next year, Kidaftari Accounting aims to achieve the following impact goals with funding: 

1. Increase the number of MSMEs within its portfolio that have access to credit by at least 30% through the integration of digital collateral into the loan issuance process.
2. Increase the number of women and youth entrepreneurs who use the Kidaftari Accounting system by 40%, through targeted marketing campaigns and partnerships with organizations that support these groups such as Kenya's Micro and Small Enterprises Authority (MSEA).
3. Create at least 30 new jobs through the expansion of Kidaftari's team and the growth of its customer base.
4. Improve the financial sustainability of at least 100 MSMEs by providing them with tools and resources to manage their finances more effectively e.g. through training, mentorship and embracing digital inclusion. 

To achieve these goals, Kidaftari Accounting will undertake the following strategies:

1. Develop partnership with financial institutions to facilitate the integration of digital collateral into the loan issuance process.
2. Create targeted marketing campaigns to reach women and youth entrepreneurs and promote the benefits of using Kidaftari Accounting.
3. Expand the Kidaftari team by hiring skilled professionals who can help the company achieve its goals.
4. Provide ongoing training and support to MSMEs using the system to help them manage their finances more effectively.

In the next five years, Kidaftari Accounting aims to achieve even greater impact goals:

1. Increase the number of MSMEs that have access to credit by at least 60%.
2. Increase the number of women and youth entrepreneurs who use the system by 60%.
3. Create at least 200 new jobs through the expansion of Kidaftari's team and the growth of its customer base.
4. Improve the financial sustainability of at least 500 MSMEs by providing them with tools and resources to manage their finances more effectively.

To achieve these long-term goals, Kidaftari Accounting will continue to seek funding opportunities, develop partnerships with financial institutions, expand its marketing efforts, and invest in the growth of its team and customer base. Additionally, the company will explore new features and tools that can help MSMEs grow and succeed.

Overall, Kidaftari Accounting is committed to making a positive impact on MSMEs in Kenya and Africa by improving access to credit, promoting business sustainability, creating jobs, and empowering women and youth entrepreneurs. Through targeted strategies and ongoing investments in its team and technology, the company is well-positioned to achieve its impact goals in the next year and beyond.

Kidaftari Accounting will measure its progress toward its impact goals through a combination of qualitative and quantitative metrics. The company will track key performance indicators (KPIs) related to its impact goals and regularly evaluate its progress against these metrics. Some examples of KPIs that Kidaftari Accounting may track include:

1. Number of MSMEs that have access to credit through the system
2. Number of women and youth entrepreneurs using the system
3. Number of jobs created by Kidaftari and its customers
4. Financial sustainability metrics such as revenue growth, profit margins, and cash flow
5. User engagement metrics such as user retention and satisfaction rates
6. Number of transactions processed through the system
7. Time saved by MSMEs using Kidaftari compared to traditional bookkeeping methods
8. Number of training and support sessions provided to MSMEs

Kidaftari Accounting will also conduct regular surveys and interviews with its customers to gather qualitative feedback on the impact of the system on their businesses. This feedback will be used to refine and improve the system and its impact over time.

By tracking both quantitative and qualitative metrics, Kidaftari Accounting will be able to measure its progress toward its impact goals and make data-driven decisions to achieve even greater impact in the future.

Kidaftari Accounting is designed to address several key challenges faced by MSMEs in developing countries. These challenges include limited access to credit, poor petty cash management, lack of distinction of business expenses from personal expenses, poor record-keeping practices, and a lack of financial literacy. The theory of change or logical framework of Kidaftari Accounting links its activities to immediate outputs and longer-term outcomes as follows:

Activities:

1. Develop and offer an easy-to-use, cloud-based bookkeeping software that manages petty cash and integrates with M-PESA and bulk SMS providers
2. Offer training and support to MSMEs on how to use the system
3. Offer and ease access to credit and other financial services to MSMEs through the system and other financial institutions.

Outputs:

1. Increased adoption of Kidaftari Accounting software by MSMEs
2. Increased financial literacy and understanding of bookkeeping principles among MSMEs
3. Increased access to credit and financial services and improved petty cash management for MSMEs

Outcomes:

1. Improved financial management and sustainability of MSMEs
2. Increased business growth and job creation
3. Increased economic empowerment of women and youth entrepreneurs

Kidaftari Accounting aims to address these challenges by providing a simple, easy-to-use bookkeeping software solution that is affordable and accessible to MSMEs. The software is cloud-based, allowing for real-time reporting and automation of payments through M-Pesa integration. It also offers multi-currency support, affordability, and different payment plans, including post-paid or pre-paid options.

The solution also includes a feature called kiLipo (Petty cash manager), which is an e-wallet hosted by M-Pesa, allowing users to manage their petty cash expenses and access credit through digitized collateral based on transactional data. This feature aims to improve access to credit for MSMEs, which is a key challenge in many developing countries.

In addition to its technical features, Kidaftari Accounting offers training and support to MSMEs to improve their financial literacy and record-keeping practices. By improving these skills, MSMEs can become more attractive to lenders and better able to manage their finances, leading to increased sustainability and job creation.

The theory of change for Kidaftari Accounting is that by providing a simple, affordable, and accessible bookkeeping software solution, along with training and support, MSMEs will be better able to manage their finances, improve petty cash management, increase access to credit, and improve their business sustainability and job creation potential. The solution's features, such as M-Pesa integration and kiLipo, are specifically designed to address the key challenges faced by MSMEs in developing countries. By improving the financial literacy and record-keeping practices of MSMEs, Kidaftari Accounting aims to create a positive impact on the lives of these entrepreneurs and their communities. The testimonial videos on YouTube from some of Kidaftari users provide evidence to support the existence and strength of the links in the theory of change.

Software, internet, mobile devices, digital payments 

Despite Kidaftari's lean management team/workforce, the following are core principles that the founding partners share: 

1. Actively recruiting from diverse candidates.
2. Providing equal access to opportunities.
3. Addressing disparities and systemic barriers.
4. Creating an inclusive workplace culture.
5. Regularly evaluating progress towards Diversity, Equity and Inclusion goals.

These actions and policies promote an environment where all employees feel valued and supported, regardless of their background.

Kidaftari Accounting is a Kenyan-based company that offers a platform for businesses to manage all aspects of their business operations. Its services provide value to small and medium-sized enterprises (SMEs), youth, and women communities by helping them improve the efficiency of their operations, increase revenue, and increase business sustainability. 

One of the ways Kidaftari generates revenue is by charging a 1% commission on all e-wallet top-ups. The e-wallet (kiLipo) is a valuable service to its clients as it enables them to easily manage their petty cash expenses. The commission earned from these transactions helps to cover Kidaftari's operating costs ensuring no service down-times. 

Another way Kidaftari generates revenue is through monthly subscriptions, starting from 16USD per year. This fee provides access to the platform and its various features, including unlimited accounting services, customer & supplier management, full financial reporting, e- wallet among others. SMEs, can choose a package that best suits their business needs and budget. 

Additionally, Kidaftari offers a post-paid option of 1% of monthly sales for unlimited access to Kidaftari's features. This incentivizes the company to help its clients grow their sales and revenue, as it directly benefits Kidaftari's bottom line. SMEs can leverage this option to gain access to the platform's capabilities and pay for it as they use it.

Kidaftari also generates revenue through training and implementation services. At a one-off fee, the company offers training and implementation support to help its clients optimize their use of the platform and improve their overall business operations. This is particularly useful for SMEs who may not have the resources to hire dedicated staff or consultants to handle these functions.

Kidaftari also generates revenue by charging 1 KES per SMS sent from its platform. This revenue model allows the startup to generate income while also providing a valuable service to its users.

Kidaftari's services have a significant impact on the SME, youth, and women communities. By providing a platform for businesses to manage their sales, inventory, and other essential functions, Kidaftari helps SMEs streamline their operations, reduce costs, and increase revenue. This, in turn, helps SMEs grow their businesses and create job opportunities for youth and women entrepreneurs.

At Kidaftari, our key customers are SMEs, youth, and women entrepreneurs who are looking for affordable and accessible solutions to manage their businesses effectively and ease their access to credit. We provide a platform that enables businesses to manage their operations efficiently. Our services include a user-friendly interface, customizable features, training and implementation services, and post-paid options that allow businesses to manage their costs flexibly and effectively.

We provide these products and services through our online platform and a team of experienced professionals who are dedicated to helping businesses streamline their operations and grow their businesses. Our clients need our services because they are looking for a reliable and affordable solution to manage their businesses effectively. By using Kidaftari, they can reduce costs, increase revenue, increase to access credit, job opportunities for themselves and others in their communities.

Kidaftari's financial sustainability plan is focused on generating steady revenue streams, minimizing expenses, and securing additional funding from grants and venture capital investors.

To achieve financial sustainability, Kidaftari will continue to generate revenue through its existing business model, which includes monthly subscriptions, 1% monthly sales post-paid option, commission on e-wallet top-ups, cost of sending SMSs from the platform and one-off training and implementation fees. These revenue streams will be closely monitored to ensure that they are generating enough income to cover the company's operating expenses and allow for growth.

In addition to generating revenue, Kidaftari will also focus on minimizing expenses to increase profitability. This will be achieved by keeping a lean workforce and outsourcing non-core activities to third-party service providers. The company will also implement cost-saving measures such as reducing travel and marketing expenses, utilizing cloud-based services, and negotiating favorable vendor contracts.

To attract new customers, Kidaftari will increase its marketing activities with funding from grants and VC funding. This will involve targeted online advertising, social media engagement, and attending relevant industry events. The company will also prioritize customer service and support to ensure that clients are satisfied and remain loyal to the platform.

To increase customer numbers, Kidaftari will expand its services to other markets and regions, targeting milling, agriculture and waste & recycling sectors that have yet to adopt similar solutions. This will involve partnering with local host associations and leveraging word-of-mouth referrals to gain traction in new markets.

Finally, to ensure the quality of its services, Kidaftari will invest in continuous improvement and development of its platform, keeping up with industry trends and customer feedback. This will help to increase customer satisfaction and loyalty, leading to increased revenue and profitability.

In terms of securing additional funding, Kidaftari will actively seek out grant opportunities and VC funding from investors who share the company's vision and values. These funds will be used to scale operations, develop new features, and expand into new markets.

In summary, Kidaftari's financial sustainability plan is focused on generating steady revenue streams, minimizing expenses, and securing additional funding. By using its existing business model, increasing marketing activities, retaining customers, expanding services, keeping expenses low, and continuously improving quality, Kidaftari is confident it can achieve long-term financial sustainability and success.

Our bootstrapped startup is committed to achieving financial sustainability, which is a crucial goal for our business. Despite having a sustainable business model, we still face several challenges, one of which is the limited number of SMEs and strategic partners under our umbrella. This makes it challenging to maintain financial sustainability and establish trust with potential partners and clients.

To address this challenge, we plan to leverage strategic partners such as MIT Solve to grow our network and increase our brand presence. We also have several YouTube video testimonials of various SMEs who are using our product, which can be a powerful marketing tool. We plan to share them on our website, social media channels, or in other marketing materials to promote trust and build credibility with potential customers.

Our revenue in 2021 was 2000 USD, with 1% for e-wallet commissions, and revenue in 2022 was 9000 USD, with 1.7% from e-wallet commissions. We have forecasted that our revenue from the year 2023 will be 45,000 USD upwards, subject to us receiving funding. With strategic partners and funding, our business is scalable, and we can increase our chances of success and achieve long-term financial sustainability.

One of our biggest challenges has been our inability to scale our operations due to our deliberate action of keeping a lean workforce and our expenses low. While this has helped maintain sustainability, it has limited our ability to reach a wider community of SMEs, youth, and women entrepreneurs, hindering our growth potential. However, we have a plan in place to address this issue by seeking strategic partners and funding opportunities to scale our operations effectively.

We have not received any funding yet since launch, but we have a longer runway since our workforce is lean, and we have learnt strategies on how to be efficient and sustainable in the long term. To achieve financial sustainability through partnerships, investments, and funding opportunities, we plan to scale our operations by increasing our brand, enhancing trust, though increased marketing efforts, having an office and increasing our workforce, thus reaching a wider community of SMEs, youth, and women entrepreneurs.

While our business has faced some challenges, we have a plan in place to address these challenges and grow our revenue in the future. By focusing on revenue growth, seeking funding, building our brand, and scaling our operations, we can increase our chances of success and achieve long-term financial sustainability for our business. Ultimately, our success will help the SME sector grow in Kenya and beyond.

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