KENYA – Safaricom, M-PESA Africa and Sumitomo Corporation have opened applications for the latest edition of the Spark Accelerator in Kenya, which will support early-stage fintech and content startups to accelerate growth.
The initiative was initially launched by Safaricom in 2014 through the Spark Venture Fund. This fund, with a total value of US$1 million, aimed to invest in and support late-seed and early-growth stage companies operating in Kenya. The goal was to leverage Safaricom’s assets to facilitate the scaling of these companies.
The first fund invested an average of US$175,000 in six Kenyan startups, including Sendy, Lynk, Ajua, Eneza, iProcure, and FarmDrive. Although a second fund was announced in 2020, details about its progress were limited.
“The Spark Accelerator program is in line with our ambition to be a purpose-led technology company. With the accelerator, we are offering more than just capital injection which is what we did previously with Spark Fund,” said Peter Ndegwa, CEO of Safaricom.
“We have restructured the program to address the challenges that hinder early startups from growing to scale.”
The Spark Accelerator will benefit Fintech and Content startups in the initial phase. It will take an ecosystem-based approach to identify and accelerate the startups by leveraging a team of experts who understand market dynamics, emerging tech and who are keen to enable continuous innovation.
“Sumitomo Corporation’s wide range of business experience will contribute to creating innovative businesses, support the expansion of the startup ecosystem,” said Katsuya Kashiki, General Manager, Smart Communications Platform Business Division.
“Through this program, we will contribute to the development of the African economy, human resource development, and the realization of a more prosperous life for the people.”
Participating startups are set to benefit with access and technical support to develop mini-apps embedded into Safaricom’s M-PESA Super App, empowering them to reach more than 4 million customers who use the app.
“M-PESA connects more than 60 million customers and 5 million businesses across eight countries, providing a unique opportunity for startups in Africa looking to grow and scale rapidly,” said Sitoyo Lopokoiyit, MD – M-PESA Africa.
“We have therefore partnered with Sumitomo and Safaricom to launch the Spark Accelerator to provide funding, technical expertise, resources and mentorship to the next generation of the continent’s leading tech startups. In turn, the startups will create innovations that connect customers and businesses on M-PESA to more opportunities while providing them with even more value.”
In addition, M-PESA Africa will offer expertise, market research and insights, and other capacity support for startups looking to expand their reach to other countries.
The support will continue beyond the three-month program enabling startups in the program to tap into more than 60 million customers and 5 million businesses across M-PESA’s eight markets.
The accelerator program will culminate in an investor demo day for the startups to pitch for investment from Safaricom and partner venture capital firms.
The accelerator program will culminate in an investor demo day for the startups to pitch for investment from Safaricom and partner venture capital firms.
iHUB, a pioneer in Kenya’s startup ecosystem and a subsidiary of Africa’s leading innovation hub, Co-Creation Hub (CcHUB), will be the implementing partner of the Spark Accelerator. Other supporting partners include Vodacom and AWS.
T-vencubator launches in Egypt
Meanwhile, Egyptian tech-focused VC firm and incubator T-vencubator has launched operations, aimed at investing in Egyptian startups with a vision to digitize the nation and address the daily hurdles faced by its citizens.
“We believe that technology will solve a lot of Egypt’s problems. We’re not just putting money into startups; we’re investing in exceptional talents that are shaping the future of Egypt,” said Reem Safy, T-Vencubator’s CEO.
T-Vencubator is dedicated to reshaping Egypt’s future by fostering local innovation and providing a platform for startups to thrive. The company’s mission is anchored in solving everyday problems through technology. Its “Vencubation” model claims to be a “unique blend of VC and incubation”.
“The “T” in T-Vencubator signifies our core values: tomorrow, togetherness, technology, transformation, and talents, We’re paving the way for a brighter and more progressive Egypt,” said Hazem El Samra, head of growth and marketing in T-Vencubator.
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