Safaricom targets mobile app innovators with Sh90 million fund

What you need to know:

Eligible start-ups stand to receive amounts between Sh6.75 million ($75,000) and Sh22.5 million ($250,000).
To qualify, start-ups must be based in Kenya and should prove the effectiveness of their invention, its market potential and segment including its transformative aspect.

Safaricom is hoping to accelerate the development of innovative mobile applications and solutions with the launch Wednesday of a Sh90 million ($1 million) angel fund.

The Safaricom Spark Venture Fund will be offered to mobile ICT-based start-ups in the country through equity investment in their businesses or in form of other debt instruments.

Eligible start-ups stand to receive amounts between Sh6.75 million ($75,000) and Sh22.5 million ($250,000).

Kenya has been budding with young innovators and the new funding is aimed at scaling up financial access to developers in need of capital injection to grow their small tech-enterprises.

“We see this as a much needed catalyst that will help actualise our aspiration to nurture a vibrant ICT economy in Kenya. It will directly address the key startup and developers’ pain points such as the cost and speed of accessing a platform where they can test their solutions,” said Joe Ogutu, Safaricom's director of strategy and innovation.

The fund, which has been set-up for an initial two-year period, will be administered by international tech fund TBL Invest, who will be the principal fund managers.

To qualify, start-ups must be based in Kenya and should prove the effectiveness of their invention, its market potential and segment including its transformative aspect.