Tech start-ups tap Sh479m Google funding

Twelve tech startups from Kenya are among the 60 eligible black-founded startups that will receive a Sh479.2 million ($4million) funding and support across Africa to enable them to scale up.

Google announced the second cohort of Google for Startups Black Founders Fund (BFF) for Africa in Nairobi yesterday.

Selected startups will receive support in the form of a 6-month training programme that includes access to a network of mentors to assist them tackle challenges unique to them.

Charles Murito Director, Sub Saharan Africa, Government Affairs & Public Policy at Google saysthey started with a Sh360 million ($3 million) fund which was granted to 50 firms last year.

“Firms founded by black founders, usually have a deficit in the amount of money they are able to raise, so last year we launched the fund to bridge that gap,” said Murito.

Black empowerment

But starting a business requires financial backing, and black entrepreneurs are often at a disadvantage. Black business owners are also often fighting an uphill battle against low credit scores.

The Kenyan startups that are set to benefit from the funding are Ajua, BuuPass, FlexPay, DohYangu, Keep IT Cool, Leja, Zuri Health, Zanifu, TopUp Mama, TIBU Health, Synnefa and Solutech.

The 60 grantees will also get non-dilutive awards rangin from Sh6 million ($50,000), Sh12 million ($100,000) and up to Sh24 million ($200,000) in Google Cloud credit. Made up of 50 per cent women-led businesses, hail from Botswana, Cameroon, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Senegal, South Africa and Uganda.  They specialise in sectors such as fintech, healthcare, e-commerce, logistics, agtech, education, hospitality and smart cities.