Safaricom, M-Pesa and Sumitomo have inked a deal to support startups in their initial stages to enable them to scale up their operations in the country.
Dubbed Spark Accelerator, the program seeks to pick out outstanding and quality startups and provide them with a blend of mentorship, funding and go-to-market support.
“Anchored around our purpose of transforming lives and in line with our ambition to be a purpose-led technology company, our goal is simple yet powerful, to empower startups with the access they need to succeed,” said Safaricom Chief Executive Officer (CEO) Peter Ndegwa.
“We are taking an ecosystem-based approach to provide a platform for bold and visionary founders to grow and scale their businesses,” added Ndegwa.
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Startups in the country face hindrances such as limited access to the market, the gap in knowledge and skills to run a business and the inability to secure funding which shrinks the lifetime survival rate for startups to 30 per cent according to studies.
Spark Accelerator program seeks to reverse this by fostering innovation in startups to enable them to grow.
“We are keen to see startups grow and we are happy to open our technology to facilitate this growth. M-PESA is a massive ecosystem with over sixty million customers and three million businesses across Africa, and we trust this acceleration program will enable startups to create value within this ecosystem,” said Sitoyo Lopokoiyit, Managing Director, M-PESA Africa.
“With the synergy of our extensive business expertise and the products and services offered by emerging start-ups we connect with via this initiative, we are committed to fostering the growth of the start-up ecosystem,” said Katsuya Kashiki Corporate Officer, General Manager of Smart Communications Platform Business Division, Sumitomo Corporation.
“In doing so, we aim to drive innovation, and further the reach of digital financial services, enriching sectors like e-commerce, insurance, and entertainment in Africa,” added Katsuya.
Read: Safaricom Increases Single M-Pesa Transaction Limit To Ksh250,000
The Spark Accelerator will be launched within the 2023/24 fiscal year and will leverage a team of founders and experts to accelerate product innovation across different industry verticals.
The Spark Accelerator program will seek to provide shortlisted startups with access to the market, access to capital, and access to technology and product development support.