Safaricom has established two new subsidiaries to spend money on tech startups in Kenya. The subsidiaries will give attention to seed-stage and growth-stage startups – and so they haven’t changed Spark Fund, launched eight years in the past.
Safaricom disclosed a plan to enter the enterprise capital area a couple of days in the past. The Kenyan telco hinted at establishing two new subsidiaries to establish and spend money on tech startups in Kenya. It revealed plans to inject capital into startups as a big a part of its subsequent progress frontier. These subsidiaries have formally been created following a consensus at Safaricom’s fifteenth shareholders’ annual basic assembly held right now.
In a press release, Safaricom CEO Peter Ndegwa stated, “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.”
Seed-stage investment subsidiary
Safaricom has arrange an organization restricted by assure to spend money on seed-stage startups. This enhances the present Spark Fund, an investment entity ruled by a board of trustees, which empowers and nurtures start-ups in Kenya. The new entity is anticipated to streamline administrative processes and improve governance, additional supporting younger entrepreneurs.
At first, Safaricom didn’t point out what would occur to Spark Fund. Launched in 2014, the fund has backed quite a few startups, reminiscent of Sendy, iProcure, Eneza Education, and Ajua, whereas receiving functions from over 200 different startups. Spark Fund fosters the profitable improvement and enlargement of promising cellular tech startups in Kenya and presents investment, enterprise improvement assist, and technical help to native and up-and-coming startups. With the launch of the brand new subsidiary, it’s clear that it’s going to work hand in hand with Spark Fund to establish and finance promising seed-stage startups.
“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,” stated Ndegwa.
Growth-stage investment subsidiary
This new subsidiary can have a transparent mandate: to spend money on well-established startups that can be key to accelerating Safaricom’s journey towards turning into a ‘purpose-led tech company by 2025,’ as per the telco’s CEO. Not solely that, however this entity will even function the first investment platform for all strategic investments carried out by Safaricom.
Adil Khawaja, Chairman of the Board, stated, “We thank our shareholders for their unwavering support in establishing the new subsidiaries. By investing in tech entrepreneurs and initiatives aligning with our strategic mission, we aim to continue transforming lives by connecting people, opportunities, and information while driving innovation, creating value, and leaving a lasting impact on society.”
Dividend payout
Finally, Safaricom shareholders have accredited a last dividend of KES 0.62 per unusual share, bringing the full dividend for the 12 months to KES 1.20 per share. The interim dividend of KES 0.58 per share, accredited in February 2023, amounted to KES 23.24 billion ($163.4 million). The last dividend of KES 0.62 per share will quantity to KES 24.84 billion ($174.6 million), bringing the full dividend payout for the 12 months to KES 48.08 billion ($338 million).
…. to be continued
Read the Original Article
Copyright for syndicated content material belongs to the linked Source : TechCabal – https://techcabal.com/2023/07/28/safaricom-launches-two-investment-subsidiaries/