How strategic backing accelerates startup growth – GSMA Innovation Fund

Access to the right capital can be catalytic on a start-ups journey to scale. But access to capital alone is not enough. There are several challenges early-stage start-ups need to navigate when they dare to reduce inequalities in the world, commit themselves to solving critical problems and deliver innovative solutions that improve access to products and services for the underserved. Add to this, the challenge to deliver socio-economic impact in a way that is sustainable and scalable for climate action and humanitarian support.

While the GSMA Innovation Fund’s grant funding model has been well established for over a decade, the approach to provide effective Technical Assistance (TA) or venture building support has been through several iterations, assumptions and evaluations. Since 2023, the GSMA Innovation Fund has made concerted efforts to establish a clear strategy that complements the efforts to de-risk innovation and create pathways for scale. During this time, the Fund has provided TA pre-grant award, during the grant period (15-18 months) and post grant.

This blog explores the Fund’s challenges, lessons learned and the way forward.

Striking the right balance

As context, the GSMA Innovation Fund seeks to support for-profit small and growing businesses in low-and middle-income countries. The Fund selects companies that leverage digital technology to deliver solutions with the most potential to have transformative impact. The Fund’s sweet spot being seed stage/pre-series A companies. While the Fund has explored venture building support – nurturing startups from ideation to scale, the operating model is more aligned with a technical assistance approach i.e. access to expert support for organisations to improve their capabilities in specific areas. That said, there are shades of grey in between.

Historically, the Fund has taken a portfolio approach. This offers opportunities for learning, to balance risk, and explore intersections that may not be addressed by traditional capital, such as waste to energy, climate and gender, or recycling and health. However, this approach presents the challenge of supporting the varied and constantly evolving needs of companies within the portfolio. This makes the provision of bespoke technical assistance complex and resource and capital intensive.

Since 2023, the GSMA Innovation Fund facilitated 86 technical assistance offerings to 31 portfolio companies that predominantly addressed climate resilience and adaptation.

Infographic with three sections: 1) On average, 2 TA opportunities per grantee. 2) TA support was provided 3% pre-grant, 80% during grant, 17% post-grant. 3) TA projects lasted 2–12 weeks. Icons of lightbulb, calendar, and gear above each section.

Distribution of TA needs supported across 31 startups

During this period, some portfolio companies had capacity challenges trying to absorb TA while also meeting their grant project obligations (milestones and reporting commitments). Furthermore, around 10% of portfolio companies declined TA due to either time limitations or a lack of relevance to their needs. Some companies also raised cases where TA did not reduce their barriers to scale.

Maximising TA value through relevance

In the first quarter of 2025, the GSMA Innovation Fund conducted a self-assessment regarding the technical assistance provided to portfolio companies to understand where it was most effective.

Portfolio companies placed a higher value on concrete deliverables rather than on advisory support or coaching. While guidance can be helpful, guidance combined with implementation support wins every time. The companies also stressed the importance of engaging with service providers that have deep understanding of the local context. Grantees expressed a preference for local consultants and context-aware delivery.

Timing, strategic alignment and measurable outcomes were critical factors that contributed to the effectiveness of the technical assistance that was deployed. While not all TA initiatives achieved their intended outcomes, the most effective cases either led to two high level outcomes 1) strengthening the organisations foundations by ensuring they have the fundamentals and 2) developing capabilities that can lead to sustainable growth.

Grantee TA highlights

1. Strengthening the foundations

Financial Management

Crop2X uses IoT sensors and satellite imagery to provide farmers with real-time data and actionable insights in Pakistan. During the due diligence and selection phase, the team uncovered opportunities to strengthen Crop2X’s financial systems. Recognising the importance of sound financial management, the GSMA Innovation Fund contracted a consultant to provide tailored guidance and hands-on training before the grant award. This proactive support enabled Crop2X to implement a robust financial management system, setting the stage for sustainable growth and impact. Throughout the grant period, Crop2X consistently delivered high-quality financial reporting and clear evidence of compliance. Beyond the grant, the strengthened financial systems and policies have positioned the organisation on a solid path toward financial stability. With these foundations in place, Crop2X is now better prepared to scale its operations and achieve long-term success.

2. Developing capabilities

Financial Management

Farm to Feed is transforming Kenya’s food system by connecting smallholder farmers to buyers, helping them sell surplus produce, earn additional income, and reduce food waste. During the grant period, the team identified the need to strengthen operational resilience and investment readiness. To address this, Farm to Feed received support from a fractional CFO who provided financial oversight, fundraising strategies, and budget planning. Through this technical assistance, the organisation enhanced its financial reporting controls, improved transparency, and streamlined decision-making processes. The CFO also established a clear 2025 budget structure, ensuring financial stability and efficient resource allocation. These improvements contributed to a successful seed round and positioned Farm to Feed for continued growth and impact.

3. Developing capabilities

Product/Tech Development

The word "orenda" is written in lowercase orange letters. The vertical line of the letter "d" extends upward, forming the trunk of a simple tree outline, with the tree’s round canopy above the line, all in the same orange color on a white background.

Orenda bridges the digital divide in Pakistan by providing high-quality digital education at government scale now serving 600+ schools and 166,000 students. The Fund provided access to technical assistance that enabled a breakthrough in AI for education. Orenda developed advanced OCR capabilities for Urdu Nastaleeq one of the world’s most challenging scripts improving layout recognition and accuracy for course books and handwritten exams. This foundational work in speech and text processing unlocked a broader vision to see if AI could go beyond reading Urdu text and understand classroom teaching. Access to technical assistance support enabled Orenda to build Rumi, an AI teaching assistant that transcribes classroom audio, analyzes teaching quality, and provides personalised coaching to teachers all via WhatsApp, on 2G/3G networks, in multiple languages. Today, the OCR system continues to evolve through data-driven improvements, while Rumi scales internationally to Sri Lanka, Tanzania, and the Middle East.

Reframing the value-added support

Ultimately, for technical assistance to be effective, it must deliver tangible outcomes. The right type of assistance can build team capacity, provide access to expertise and deliver strategic refinement.

A table with four columns: Capacity Building, Visibility, Technical Assistance (TA), and Access to networks and markets. Each column describes support types, ranging from broad advisory and visibility to specialised TA and targeted investor connections. An arrow below shows a spectrum from "Accessible to all" to "Targeted.

These pillars support the shift away from change, from providing bespoke technical assistance to all portfolio companies moving towards offering more selective, targeted support. Furthermore, the Fund’s approach has evolved to focus on technical assistance delivered pre grant award to strengthen the foundations and support post grant award to support sustainable growth.

This has been a two-year collaborative journey with the Fund’s portfolio companies and is in no way a finished article. The Fund will continue to evolve, learn and iterate to get the right balance.

Ecosystem Support

We would like to thank all the consultants and firms who contributed their technical expertise to providing one-to-one support to our portfolio companies. In addition, we are grateful for the additional support from the EY Ripples team for their comprehensive coaching support to our climate cohort, to VC4A for the extensive investment readiness support and all the partners that delivered a virtual masterclass session.

Thirteen professionally dressed people pose and smile in two rows in front of an EY (Ernst & Young) branded backdrop. Some are kneeling in the front; others stand behind them. There are green plants on both sides of the group.

A group of professionals, diverse in gender and ethnicity, sit around a rectangular table in a modern meeting room. They are engaged in discussion, taking notes, and listening. The wall has a screen displaying "Shape the future with confidence.

To stay updated with the GSMA Innovation Fund subscribe to our newsletter here.

The GSMA Innovation Fund is currently funded by UK International Development from the UK government and the Swedish International Development Cooperation Agency (SIDA), and is supported by the GSMA and its members.