In May 2024, nine tech startups were selected to join the Spark Accelerator Programme.
Like many startups in need of funding, it was a race for capital, and the initiative presented a once-in-a-lifetime opportunity. Each tech-based business aimed to participate in the venture capital fund’s programme, which would help develop and scale up its operations.
These startups, however, soon realised they needed more than money. While funding is crucial at the early stages, it is not the only defining factor for long-term success.
As the program’s activities progressed, one of the startups, Twiva, a social commerce platform specialising in influencer marketing, noticed that their target audience was unfamiliar with their brand.
The platform lets businesses market and resell their products and services through social media influencers. However, when they pitched to businesses, most of them, including influencers, were unaware that the company even existed.
“So, what this has really done for us is boost our brand awareness within the market that we operate in. Now it’s easier to be discovered and have people reach out, wanting to partner with us,” Peter Kironji, CEO and Co-Founder of Twiva says.
The brand recognition has led to an increase in the number of influencers and businesses that utilise the platform.
The start-ups also require technical expertise, a product that fits the market, mentorship, networking opportunities, access to markets, an understanding of those markets, and strong leadership.
Chumz, a saving and investing platform that was also part of the first cohort of the Spark Accelerator Program, had trouble setting up organisational structures. Additionally, as a fintech, they also needed to gain the public’s trust to handle their money.
“One of the challenges we faced when entering the Spark Accelerator Program was structuring a company while being extremely busy with product development,” Samuel Njuguna, CEO and Co-founder of Chumz and Tunzi says.
During their time in the program, Samuel notes Chumz expanded its services to Rwanda and enhanced brand trust among its customers and potential clients.
He observes, “All you focus on is whether it’s working for customers, but it gets to a point where you need to focus on scale and set up in other markets. For that, you need exposure to people who are well-versed in the space, who can guide you and are experienced.”
In March this year, Safaricom graduated the first cohort of the programme and officially announced calls for the second phase.
“Well, what we expect from the next cohort is vibrancy. We expect to see more entrepreneurs with energy, with amazing ideas. I mean, if you look at some ideas that came through the first cohort, there is a wide range of propositions and challenges that these companies are trying to solve. We expect to see more of that,” says Michael Mutiga, Safaricom Chief Business Development Strategy Officer.
The Kenyan startup scene is flourishing, with young and savvy entrepreneurs at the forefront of innovation.
In 2024, Kenya secured $638 million in startup funding, representing 29% of Africa’s total startup funding, indicating that the country is emerging as a hub for startup investment.
Watch the video to learn more about the startups and the Spark Accelerator Program.
