Safaricom has unveiled plans to establish two venture capital subsidiary firms aimed at supporting tech startups in Kenya.
The company intends to provide support for both seed and growth stage startups through the creation of two distinct entities with the aim of reinforcing its role as a crucial facilitator of the tech ecosystem in the country.
Since 2015, Safaricom has been operating an investment fund called Spark Fund, which has been instrumental in supporting the successful growth and development of seed stage startups in Kenya. The company has expressed its intention to continue investing in this area through the formation of a newly established company.
“The board recommends investing in seed stage startups to foster the advancement and expansion of tech entrepreneurs and to foster trust within the tech community in Kenya,” stated the firm.
Furthermore, Safaricom plans to expand its investment scope to include growth stage startups (scale-ups) that are strategically aligned and contribute to the achievement of its broader mission. The establishment of these new subsidiaries is contingent upon shareholders’ approval at the annual general meeting scheduled for July 28.
In 2022, Safaricom announced plans to transition from a telco to a technology company. As a techno, the company seeks to position tech solutions for enterprise and public sector customers in the areas of digital business through cloud computing, cybersecurity, and internet of things (IoT) underpinned by IT consulting services.