Safaricom is set to form two new subsidiaries, one dedicated to investing in seed-stage and another on growth-stage start-ups, after the telco got approval from it shareholders at its 15th Annual General Meeting (AGM).
Like Spark Fund, one firm will be limited by guarantee to empower, and nurture and invest in seed-stage start-ups across Kenya while the other, a new private limited liability company will invest in mature, strategically aligned entities that will help accelerate Safaricom’s mission towards becoming a tech company by 2025.
“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 realising Safaricom’s purpose to become a purpose-led technology company,” said Mr Peter Ndegwa, Safaricom CEO.
The growth stage entity will also act as the main investment vehicle for all strategic investments undertaken by Safaricom PLC. The new companies will accelerate the business’ entry into new customer segments within the consumer, financial services, enterprises, and SME space and to unlock new business models and value chain opportunities.
Safaricom 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. The telco will be launching the call for applications in the coming weeks.
The Spark Fund portfolio companies include Shupavu 291 by Eneza education, which focuses on mobile-web learning for primary and secondary school students; iProcure, which provides an agricultural supply chain platform in rural Africa; Sendy, a tech company that builds fulfilment infrastructure for e-commerce and consumer brands. Africa’s first Integrated Customer Experience company, Ajua and Soko Fresh who provide access to cold chain infrastructure that extends the shelf life of produce for Digifarm farmers.