Safaricom targets mobile app innovators with Sh90 million fund

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.