Safaricom, the leading telecommunications company in Kenya, says it will create two new subsidiaries with the purpose of investing in technology startups.
According to the company, these subsidiaries will be dedicated to supporting both seed-stage and growth-stage startups. The new subsidiaries are not intended to replace Spark Fund, which was launched eight years ago.
The decision to create these subsidiaries was officially reached during Safaricom’s 15th shareholders’ annual general meeting, which took place in July 2023. Here, they unveiled a strategic plan to invest capital into startups, considering them a key element of its next phase of growth.
“We are committed to empowering the tech ecosystem in Kenya and beyond, and this strategic move will enable us to broaden our investments, embracing both seed-stage and growth-stage start-ups. Incorporating these subsidiaries is pivotal to realizing Safaricom’s purpose to become a purpose-led technology company,” CEO, Safaricom, Peter Ndegwa, said in a statement.
“We will be looking to invest in and support early-stage companies, especially in emerging technologies such as analytics, Machine Learning, Artificial Intelligence, and the Internet of Things. We will be launching the call for applications in the coming weeks.”
Since its launch in 2014, Spark fund has provided support to several startups, including Sendy, iProcure, Eneza Education, and Ajua. Additionally, it has received applications from over 200 other aspiring startups seeking its backing and assistance.
According to Ndegwa, the new subsidiary will target to invest in well-established startups that will be key to accelerating Safaricom’s journey toward becoming a purpose-led tech company by 2025. Moreover, these entities will also serve as the primary platform for all strategic investments undertaken by Safaricom, consolidating its focus on backing and partnering with impactful startups that align with its vision for the future.
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