Safaricom’s Spark Venture Fund has backed FarmDrive, a Kenyan-based data analytics company developing technologies to address the global $450bn agricultural funding gap.

Financial details were not disclosed.

FarmDrive is targeting the often overlooked niche of accessible financial services for smallholder farmers by harnessing the power of machine learning, data analytics, and user-friendly SMS systems. 

This unique combination played a significant role in the Fund’s decision to invest.

Bob Collymore, CEO, Safaricom, said: “In an era when market uncertainty is creating new challenges for the agricultural sector, mobile-based technology solutions like FarmDrive can empower farmers with the critical access to finance and to help expand their access to other essential services.”

FarmDrive leverages alternative datasets to create comprehensive credit scores and decisioning tools which financial institutions use to lend to smallholder farmers at the base of the pyramid. 

This solution is bringing financial services to the untapped market of African smallholder farmers.

FarmDrive said this investment will bolster the company’s development into a leading data analytics company building tools that drive the delivery of innovative solutions to smallholder farmers, all along the agriculture value chain. 

“We’re excited for the year to come, and we can’t wait to embark upon this new phase of growth with Safaricom by our side.”

The $1m Spark Venture Fund, launched by Safaricom in 2015, aims to support the successful development and growth of high potential mobile tech start-ups in Kenya through a combination of investment, business development support and technical assistance leveraging on Safaricom’s unique capabilities, assets and market positioning.