Spark Accelerator for Kenyan startups launched by Safaricom, M-Pesa, Sumitomo
Applications are now being accepted for Kenya’s newest Spark Accelerator, which will help early-stage fintech and content startups expand faster. Safaricom, M-PESA Africa, and Sumitomo Corporation are the sponsors of this program.
Back in 2014, Safaricom established the Spark Venture Fund with the goal of funding and assisting Kenyan-based late-seed and early-growth companies while utilizing Safaricom resources to help them grow.
A $1 million fund was established, with an average investment of $175,000 made in six Kenyan startups: Sendy, Lynk, Ajua, Eneza, iProcure, and FarmDrive. A second fund was announced in 2020, but not much was heard about it after that.
It is now accepting applications for its second edition in collaboration with M-PESA Africa and Sumitomo Corporation, a renowned Fortune 500 global trading and business investment company. A combination of training, mentorship, funding, and go-to-market support will be offered during the three-month accelerator program to help startups grow and scale and position them for long-term success.
Using 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, it will initially benefit fintech and content startups.
“The Spark Accelerator programme 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. We have restructured the program to address the challenges that hinder early startups from growing to scale,” said Peter Ndegwa, CEO of Safaricom.
“Sumitomo Corporation’s wide range of business experience will contribute to creating innovative businesses, support the expansion of the startup ecosystem.
Through this programme, we will contribute to the development of the African economy, human resource development, and the realisation of a more prosperous life for the people,” said Katsuya Kashiki, general manager of the smart communications platform business division at Sumitomo.
Access and technical assistance to create mini-apps integrated into Safaricom’s M-PESA Super App will be provided to participating startups, enabling them to reach the app’s over four million users.
“M-PESA connects more than 60 million customers and five million businesses across eight countries, providing a unique opportunity for startups in Africa looking to grow and scale rapidly. 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,” said Sitoyo Lopokoiyit, MD of M-PESA Africa.
Furthermore, M-PESA Africa is going to provide startups aiming to grow internationally with knowledge, insights and market research, as well as other forms of capacity support. Startups in the program will have access to over 60 million customers and 5 million businesses throughout M-PESA’s eight markets thanks to the support that will last beyond the three-month program.
The startups will pitch for investment from Safaricom and affiliated venture capital firms on an investor demo day at the end of the accelerator program. The Spark Accelerator’s implementing partner will be iHub, a trailblazing entity in Kenya’s startup scene and a division of Co-Creation Hub (CcHub).
You can apply till February 16th.
