tappi, a SaaS startup specializing in digital commerce, has forged a strategic alliance with Safaricom, leveraging the telecommunications giant’s M-PESA platform to empower 650,000 Kenyan micro, small, and medium enterprises (MSMEs). The collaboration is designed to enhance the digital footprint of these businesses, significantly bolstering their online credibility and visibility, and providing them with a robust foundation to flourish in the digital economy.
Through this partnership, tappi’s suite of digital services has been integrated into the M-PESA For Business Super App, an initiative aimed at expanding the range of services available to M-PESA’s extensive merchant network. M-PESA is a pivotal player in Africa’s digital payment landscape, with a user base exceeding 60 million and connections to around 900,000 businesses.
Given that MSMEs account for up to 40% of Africa’s GDP yet face a high failure rate within their initial years, this partnership presents a crucial intervention to address the challenges they face. tappi is offering MSMEs a comprehensive package at a subsidized cost, which includes a complimentary webpage, SMS/WhatsApp review integration, and bulk SMS marketing credits for KSh 1,350 (approximately $11). These tools are tailored to enhance customer engagement and optimize business processes.
Additionally, the collaboration introduces M-PESA Ratiba, an innovative automated payment solution that enables business owners to effortlessly manage recurring payments, thereby minimizing the likelihood of service interruptions.
This initiative is a significant leap in equipping Kenyan MSMEs with the necessary resources to expand their operations and improve interactions with customers. The goal is to engage at least 300,000 users of the M-PESA for Business App, and the program has already commenced with an initial cohort of over 250 businesses from diverse sectors such as food, fashion, health, and beauty.
tappi’s solutions are set to complement the existing functionalities of the M-PESA For Business app, which include features like monitoring collections, accessing statements, making payments, and conducting transactions directly from the M-PESA till number.
Kenfield Griffith, CEO and Co-Founder of tappi, emphasizes the significance of M-PESA as a transactional lifeline for millions of local entrepreneurs. He believes that tappi’s tools will serve as a vital catalyst for these businesses to attract new customers and thrive in the digital realm.
tappi’s collaboration with Safaricom is part of its broader mission to close the digital gap for Africa’s MSMEs and capitalize on the continent’s $20 billion market potential. In May 2024, tappi entered into a memorandum of understanding with the Kenya National Chamber of Commerce and Industry (KNCCI) to improve digital services for 30,000 MSMEs in Kenya. This development followed its expansion into Côte d’Ivoire in March 2024 through a partnership with MTN, which also extends to Nigeria.
Additionally, in December 2023, tappi secured $1.5 million in pre-seed funding. Since its inception in 2019, tappi has maintained a remarkable 90% customer retention rate and boasts a payback period of just 1.5 months. The platform reports facilitating $3.4 million in consumer transactions and engaging with over 180,000 consumers, underscoring its dedication to fostering digital inclusivity and supporting MSMEs across Africa.
