INSUBCONTINENT EXCLUSIVE:
Safaricom’s Nairobi-based Alpha innovation incubator may have an uncertain future, according to sources.With two high-level departures,
and the passing of Safaricom’s CEO Bob Collymore, there are questions on how or if Alpha will continue to operate.The space was
established in 2017 to spur new product development for Safaricom, which is Kenya’s largest mobile operator and the provider of M-Pesa —
East Africa’s most used mobile-money product.As TechCrunch reported, one of the first objectives of Alpha was to build upon the success of
M-Pesa.As a telco, Safaricom has 69% of the Kenya’s mobile subscribers and generates around one-fourth ($531 million) of its ≈ $2.2
billion annual revenues (2018) from M-Pesa
The fintech product has 20.5 million customers across a network of 176,000 agents.While these stats have put Safaricom in a coveted
position, the company’s former CEO Bob Collymore expressed concerns over the risk of too many eggs in one basket
For years, Collymore pressed his company to diversify product and revenue streams.Through in-house development and partnerships, Safaricom
added to its mobile and fintech network consumer and small business-based products, such as ride-hail app Little and website services.In
2017, Safaricom’s chief innovation officer and first head of Alpha, Kamal Bhattacharya, echoed Collymore’s mission to diversify the
company’s offerings.“We’d actually like to move beyond M-Pesa by leveraging its power as a social network to connect people to other
product solutions,” he told TechCrunch.Bhattacharya — who’d come to Safaricom after senior positions at IBM Research Africa and a
stint restructuring Kenyan innovation center iHub — recruited a team for Alpha, led by founder and computer scientist Shikoh Gitau.From a
market perspective, Alpha was something to watch, as corporate incubators in Africa were (and continue to be) a relatively new component
across the continent’s tech ecosystem.Alpha staff in 2018In a space purposely established away from Safaricom’s HQ, Alpha’s team of
innovators set to shaping new digital offerings.In 2018, the incubator rolled out its first product, a social networking platform called
Bonga, to augment M-Pesa.Because M-Pesa was already established as a commercial network, the idea was to amplify that by creating more
social media-type transactions around it — channeling Facebook, YouTube, iTunes, PayPal and eBay in one platform.With Bonga, Alpha
appeared to have some momentum into 2018, before the innovation incubator lost two of its biggest backers.First, Kamal Bhattacharya exited
Safaricom and his position of lead of Alpha in October 2018
The reason given by the company was a bit of corporate say-nothing-speak: “leaving to pursue other interests.”The real reasons for
Bhattacharya’s sudden exit were unclear
There was, however, plenty of scuttlebutt about powers within Safaricom — resistant to the brand of bureaucracy rattling change Alpha
could bring — conspiring to push him out.After losing its head, Alpha lost another key ally in Bob Collymore when he passed away in July
of this year after a fight with cancer.
Alpha said farewell to another senior figure in August when Huston Malande left
It also rebranded Bonga to Zwuup this year — though Safaricom’s last two annual reports don’t indicate how the product has fared under
either name, with no mention of Bonga, Zwuup or Alpha.What’s next for Alpha?Several sources close to Safaricom (speaking on background)
expressed doubt that it would have the support within the company to continue after Collymore’s passing.One source suggested Alpha would
more likely be morphed into the larger Safaricom bureaucracy rather than shut down completely, to avoid negative news that an abrupt closure
would bring.TechCrunch asked Safaricom directly on the future of Alpha, and specifically if it would confirm or deny reports the innovation
incubator could shut down
A Safaricom spokesperson said it could not comment on anything related to Alpha’s products or performance before Safaricom’s next
earnings reporting, scheduled for November 1.So Kenya’s tech community will have to wait a couple more weeks to see if Safaricom sticks
to its experiment to spur inside innovation by creating an outside incubator — or not.
