Start-Ups and Mobile in Emerging Markets: Insights from the GSMA Ecosystem Accelerator
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Start-ups and Mobile in Emerging Markets: Insights from the GSMA Ecosystem Accelerator Issue 3, Summer 2018 © GSM Association 2018 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Ecosystem Accelerator The GSMA represents the interests of mobile operators The GSMA Ecosystem Accelerator programme focuses worldwide, uniting more than 750 operators with over 350 on bridging the gap between mobile operators and companies in the broader mobile ecosystem, including start-ups, enabling strong partnerships that foster the handset and device makers, software companies, growth of innovative mobile products and services. Foreword equipment providers and internet companies, as well These partnerships bring impactful mobile solutions to as organisations in adjacent industry sectors. The GSMA the people and places that need them most, generating also produces industry-leading events such as Mobile the greatest socio-economic impact. In particular, the World Congress, Mobile World Congress Shanghai, Mobile programme operates an Innovation Fund which supports World Congress Americas and the Mobile 360 Series African and Asian start-ups with direct grant funding, of conferences. technical assistance, and connections with mobile Since we first announced our Ecosystem Accelerator have collectively had a positive impact for over one operators. Innovation Fund in July 2016, we have received million citizens. The type of impact varies depending on For more information, please visit the GSMA corporate applications from over 1,650 start-ups and the team has the start-up, ranging from improved access to financial website at www.gsma.com Learn more at www.gsma.com/ecosystemaccelerator conducted on-the-ground due diligence on nearly 90 services in areas previously underserved to better or contact us at [email protected] of them. Based on this experience, we are more convinced availability of sustainably sourced fruits and vegetables Follow the GSMA on Twitter: @GSMA. than ever that start-ups in Asia Pacific and Africa are a or out-of-classroom educational support. Follow GSMA Mobile for Development on Twitter: driving force in turning social and economic challenges @GSMAm4d into opportunities. It is also still clear that mobile More often than not, mobile operators are connected technology is essential to reaching users and driving to these successes. Their involvement can take many growth, while partnerships with mobile operators can truly forms, from co-branding and marketing (Jamii/Vodacom unlock scale. The traction we are seeing from our first in Tanzania) to equity investments (Joonaak/Smart cohort of grantees (nine companies selected in April 2017) Axiata in Cambodia). and early results from our second cohort (15 ventures announced in February 2018) are extremely encouraging. The accelerating pace at which mobile operators are launching new initiatives to support local innovation This document is an output of a project funded by UK As of July 2018, our portfolio start-ups have collectively ecosystems (section two of this report) also speaks aid from the Department for International Development raised an additional GBP 16.5 million in funding, which to their long-term commitment to supporting (DFID) and Australia’s Department of Foreign Affairs represents 3.3 times the amount committed to these entrepreneurship. Finally, mobile operators are putting and Trade (DFAT), for the benefit of developing countries. ventures by the Innovation Fund. We are hopeful this powerful tools in the hands of start-ups, starting with The views expressed are not necessarily those of DFID number will keep growing in the coming months as at mobile money whose impact extends way beyond and DFAT. least five of them are engaged in fundraising rounds financial inclusion, in part thanks to the myriad of likely to exceed GBP 1 million. This is encouraging not use cases start-ups develop (section three of this only because these funds will help the ventures continue report). Authors: developing, but because they are also validation from the investment community that their business models have We look forward to witnessing even more growth Josie Middleton – Knowledge Manager, Ecosystem Accelerator, GSMA the potential to generate impact at scale. in this space, and to continue working with the Sam Ajadi – Insights Manager, Ecosystem Accelerator, GSMA rest of the ecosystem — tech hubs, investors, Maxime Bayen – Insights Director, Ecosystem Accelerator, GSMA When it comes to measuring this impact, we are happy governments — to support these developments. to report that the 24 projects we have been financing Please do not hesitate to get in touch! Contributors: Gregory Omondi – Market Engagement Manager, Ecosystem Accelerator, GSMA Nathan Naidoo – Interim Head of Programme, Mobile Money, GSMA Max Cuvellier Jisas Lemasagarai – Senior Market Engagement Manager, IPN Hub, Mobile Money, GSMA Nika Naghavi – Senior Insights Manager, Mobile Money, GSMA Anant Nautiyal – Mobile Money Services Senior Manager, Mobile Money, GSMA Head of M4D Utilities and Ecosystem Accelerator, GSMA 2 3 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Contents Start-ups and Mobile innovation 6 How our Innovation Fund start-ups are using mobile technology to offer services with impact Mobile Operators in the News 16 How mobile operators are collaborating with local start-ups Mobile Technologies for the SDGs 22 How start-ups in emerging markets are using mobile money to tackle the SDGs 4 5 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Start-ups and Mobile Innovation How our Innovation Fund start-ups are using mobile technology to offer services with impact 6 7 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Case Study 1 Jamii: Making mobile health insurance How the service works The platform is integrated with mobile money on a monthly basis and Jamii retains affordable for SMEs and low-income (Vodacom M-Pesa) to provide cashless payments an administration fee. The service is accessible when the user3 pays for the policy and when the by mobile phone through USSD. This is how populations in Tanzania insurer pays the hospital. Users pay for their policies the service works: Founding year 2016 Registering with Jamii Geography Tanzania SME customer registration (companies Individual/family and micro- Team Lilian Makoi – Founder and CEO with fewer than 50 employees): entrepreneur customer registration: Rayah Ndagire – COO (GSMA Grant Manager) Business description Jamii is a mobile micro-health insurance product The SME representative dials the M-Pesa User registers for the in a tweet: for SMEs1 and individuals in the informal economy. main menu, registers for the Jamii service micro-health insurance (SME name, full names of employees, region), by dialling the Jamii www.jamiiafrica.com 1 chooses a policy type and the duration of 1 USSD short code [USSD the insurance policy. The representative then *150*00#]. selects how many members they would like to In Tanzania, fewer than 30 per cent of the country’s are given access to hospital services that fall within pay for. 52 million people have access to health insurance.2 their policy limit. However, there are no limitations The remaining 70 per cent, who often work in the on the type of services they can receive. The policy Jamii's platform calculates the insurance User selects a policy premium for all the individuals selected by the (from 12 options) and informal economy, must pay for health services every includes dental, eye and maternity treatment, doctor SME and the SME representative then pays for pays via mobile money time they need them. Due to high administration consultations, medicine and X-rays. To reduce 2 the policy using M-Pesa (for each registered 2 (M-Pesa). costs, large insurance companies rarely serve small administration costs (by up to 95 per cent), Jamii employee). enterprises or Tanzanians earning less than $100 is relying on a mobile policy management platform Jamii's agent collects employee data through User is issued a unique a month. and on mobile money to collect premiums and pay the Jamii app and the SME representative Jamii ID number via out claims. receives an employee ID number allocated SMS. Jamii was founded in 2016 to allow low-income by Jamii for each registered employee. populations and workers in the informal sector to As of July 2018, over 6,400 people have been 3 3 access affordable healthcare financing schemes. covered by health insurance offered through Jamii The system sends each end user covered by the and 2,900 people have made health insurance claims policy an SMS with the user’s Jamii ID number, Jamii offers micro-health insurance services with which benefits can be accessed, and a list through the platform. Two hundred hospitals have of nearest hospitals that accept Jamii health plans starting at around $1 per month per person. been enrolled and this number is set to grow to 750 4 insurance. The start-up, in collaboration with Jubilee Insurance by March 2019. Jamii initially deployed its service in and Vodacom Tanzania,