Fastagger Inc., a Kenyan AI and blockchain startup, is making significant strides in supporting micro, small and medium enterprises (MSMEs) with more efficient digital tools. The company is developing low-bandwidth, AI-powered solutions tailored to the needs of MSMEs that often struggle with unreliable internet and limited computing power.
MSMEs make up about 90% of businesses globally and are even more critical in Africa, where they power local economies and livelihoods. Fastagger’s tech aims to bridge the digital divide that limits their growth and productivity.
The Nairobi-based startup founded by Kenyan innovators in the AI and blockchain space operates across Kenya, with plans to scale regionally, and according to Mr Mutembei Kariuki, co-founder and CEO of Fastagger, this challenge was not an impediment but a call to innovation.
Alongside co-founders Jude Mwenda and Stephanie Njerenga, Kariuki embarked on a mission to democratise AI, building infrastructure that allows machine learning models to run directly on basic devices, circumventing the need for constant connectivity.
The Genesis of On-Device AI
Fastagger’s approach avoids continuous internet reliance, instead designing AI tools that operate seamlessly on low-end smartphones, even in the absence of an internet connection. This groundbreaking strategy caught the attention of Google, leading to Fastagger’s inclusion in the 2023 Google for Startups Accelerator: AI First program, a pivotal moment that enabled them to refine their AI infrastructure and scale their operations.
“As co-founders, we’re fortunate to have studied and worked with various companies globally,” explains Kariuki. “This gave us a strong foundation in computer science, machine learning, and AI as we entered the startup scene.”
Launched in 2019, Fastagger initially faced an uphill battle in securing capital. “Many believed there was no AI talent in Africa,” Kariuki recalls. However, the tide turned during the 2020 COVID-19 pandemic when the team began developing ML and AI models for data labelling projects in South Korea and the United States.
Concurrently, a partnership with the Kenya Private Sector Alliance (KEPSA) proved instrumental. This collaboration opened doors to present their solution in webinars, drawing interest from hundreds of MSMEs grappling with customer loss and a lack of structured data for sales and engagement tracking.
Fastagger’s early interventions involved analysing transaction statements received via WhatsApp, leveraging their AI systems to generate reports detailing top customers. Kariuki cites an example of a barbershop that, through Fastagger’s insights, discovered it had approximately 180 loyal monthly customers – a metric previously untracked, which subsequently informed their expansion strategy. “Once we saw the impact these insights had, we realised we could do so much more,” Kariuki states.
Mobile Money: The Entry Point
“Our main goal is to make AI work for the continent,” Kariuki asserts. “Mobile money is a unique aspect of our markets, and it gives us a clear entry point.” This realisation led to the development of Auni, a secure business intelligence assistant available on the Google Play Store. Auni integrates with M-PESA, Kenya’s ubiquitous mobile money platform, transforming financial statements into actionable insights that help business owners understand customer trends and devise strategies to boost sales and revenue.
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After nearly two years of development and testing, Fastagger forged a crucial partnership with Safaricom, Kenya’s leading telecommunications provider, to officially launch Auni on the M-PESA Business app in March 2024. “Within the first month, over 600 MSMEs adopted the solution,” Kariuki notes. “While this is our first proof point of what’s possible with the devices we have in Africa, starting with mobile money, our vision is for it to also work offline as we scale.”
Democratising AI for All
“Joining the Google for Startups Accelerator: AI First program allowed us to significantly scale our solutions,” Kariuki explains. “For starters, we used the cloud credits to build the infrastructure that we’re now using to bridge the AI divide—including our own foundation document model tailored for African financial documents. We realised that existing models couldn’t accurately support the needs of MSMEs in our market.”
Today, the company’s software stack infrastructure is meticulously designed to minimise AI’s carbon footprint by conducting the majority of its operations offline, particularly for users of affordable smartphones.
The company aims to expand into other M-PESA markets such as Tanzania, Ethiopia, the Democratic Republic of Congo, and Egypt, while also exploring partnership opportunities with telecommunication companies across Southeast Asia, Latin America, and beyond.
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