African cross-border fintech startup Chipper Cash has raised a 30 million Series B funding round led by Rebate Capital – the individual VC fund of Jeff Bezos, CEO of Amazon.
Chipper Cash Was founded in San Francisco in 2018 by Ham Serunjogi of Uganda and Majid Mouzald of Ghana. The company provides mobile-based, no fee, P2P payment services in seven countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.
Parallel to its P2P app, the startup also runs Chaper Checkout – a merchant-centric, fee-based payment product that generates revenue to support Chipper Cash’s free mobile-money business. The company has grown to 3 million users on its platform and processes an average of 80,000 transactions monthly. According to CEO Ham Serunzogi, in June 2020, chip cash reached a monthly payment value of $ 100 million .
As part of Series B, the startup plans to expand its products and geographic scope. On the product side, which allows for offering more trade payment solutions, crypto-currency trading options and investment services.
“We will always be a P2P financial transfer platform at our core. But we have demanded our users to offer other value services… such as buying cryptocurrency assets and investing in stocks, ”Serunjogi told ClearTips on a call.
Chipper Cash has added a beta dropdown on its website and app to buy and sell bitcoins and invest in US stocks from Africa – later through a partnership with American financial services company DriveWealth.
“We will upload [the stock product] First Nigeria has option to buy partial stock in Nigeria – Tesla Stock, apple share or amazon Share and others – through our app. We will then expand to other countries, ”Serunzogi said.
Towards business financial services, the startup plans to offer more API payment solutions. “We have been receiving a lot of requests from people on our P2P platform who also have business ventures, which are able to collect payments for the sale of goods,” Serunjogi explained.
Chipper Cash also plans to use its Series B financing for additional country expansion, which the company will announce by the end of 2021.
Jeff Bezos The chaper cache is backed by a string of recent events that have increased the visibility of Africa’s startup scene. Over the past decade, the continent’s tech ecosystem has been the fastest growing in the world with year-over-year expansion in venture capital and startup creation, which is concentrated in countries such as Nigeria, Kenya and South Africa.
Africa’s large unbanked population and underbank consumers and SMEs bring prominence online. According to World Bank data, 66% of the 1 billion people in sub-Saharan Africa do not have a bank account.
As such, fintech has become Africa’s most funded technology sector, receiving an estimated $ 2 billion of VC, which went to startups in 2019. With rapid venture fund growth over the past decade, Africa’s tech scene was a display light, with only a known econorn (e-commerce venture jumia) with a handful of exits and no large public share offerings. This changed last year.
In April 2019, backed by investors including Jumia – Goldman Sachs And mastercard – NYSE went public in IPO. Later in the year, Nigerian fintech company Interswitch acquired unicorn status after a $ 200 million investment by Visa.
This year, Network International bought East African payments startup DPO for $ 288 million and in August WorldRemit acquired Africa’s remittance company Sendwave for $ 500 million.
One of the more significant liquidity events in African technology occurred last month, when Striped Acquired the Nigerian payment gateway startup Pestac for a reported $ 200 million.
In an email to ClearTips, a spokesperson for Bezos Expeditions Confirmed the fund’s investment in Chipper Cash, but declined to comment on further plans to scale back African startups. According to Crunchbase data, the fund will be the first investment in Africa. It is worth noting that Bezos Expedition is not associated with Jeff Bejo’s hallmark business venture, Amazon.
For Cheper Cash, the $ 30 million Series B raises an event-filled two-year cap for San Francisco-based payments company and founders Ham Serunjogi and Majid Mouzald. Both came to the US for academics, met in Iowa while studying at Lovine College and went out in Silicon Valley for a stent in big technology: Facebook for Serunzogi and Flickr and Yahoo! For Moujaled.
Startup Call insisted and after launching Chipper Cash in 2018, the couple co-founded 500 startups and Liquid 2 Ventures – American football legend Joe Montana – to back their company with a seed fund. The startup expanded to Nigeria and Southern Africa in 2019, entered into a payment partnership with Visa in April and raised a $ 13.8 million Series A in June.
Chaper Cash founder Haim Serunjogi believes supporting his company by a notable technical figure like Jeff Bezos (the world’s richest man) has benefits beyond his enterprise.
“It’s a big deal when world class investors like Bezos or Rebbit Move from their sweet spot to a new area where they had not invested earlier, ”he said. “Ultimately, the winner of the things that make up the overall African tech ecosystem is because it will bring more investment for African startups from firms of that caliber.”