African cross-border fintech startup Chipper Cash has just raised a sum of $30 million Series B funding round which was led by Ribbit Capital and also got participation of Bezos Expeditions — the personal VC fund of Amazon CEO Jeff Bezos.
Chipper Cash was established in 2018 in San Francisco by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The company provides mobile-based, P2P payment service with no fees to people in Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya at the moment.
Alongside its fee-free app, the company also runs Chipper Checkout, which is a fee-based service focused on merchants to enable them receive payments for their goods and services – this serves as a revenue generating avenue for the business to help support its free mobile-money business. The company currently boasts to 3 million month active users on its platform and processes an average of 80,000 transactions every day. According to the CEO, Ham Serunjogi, the company reached a monthly payments value of $100 million in June this year.
Chipper Cash intends to expand its products and geographic scope as part of expenditure for the Series B raise. On the product side, that entails offering more business payment solutions, crypto-currency trading options, and investment services.
“We’ll always be a P2P financial transfer platform at our core. But we’ve had demand from our users to offer other value services…like purchasing cryptocurrency assets and making investments in stocks,” Serunjogi said.
In light of its intention to further its stake in crypto market, Chipper Cash has added beta dropdowns on its website and app to buy and sell Bitcoin and also provided an option for users in Africa to invest in U.S. stocks — this latter feature has been enabled through a partnership with U.S. financial services company DriveWealth.
“We’ll launch [the stock product] in Nigeria first so Nigerians have the option to buy fractional stocks — Tesla shares, Apple shares or Amazon shares and others — through our app. We’ll expand into other countries thereafter,” Serunjogi added.
Chipper Cash also takes it further on the business financial services side as it is planning to offer more API payments solutions. “We’ve been getting a lot of requests from people on our P2P platform, who also have business enterprises, to be able to collect payments for sale of goods,” explained Serunjogi.
Chipper Cash also plans to use its Series B financing for additional country expansion, which would be announced by the end of 2021.
Jeff Bezos’s investment in Chipper Cash follows a recent string of events that has elevated the visibility of Africa’s startup scene. Over the last ten years, the African continent has seen its tech ecosystem being one of the fastest growing in the world by year-on-year expansion, with increased venture capital investments and startup formation. Start-ups in countries like Nigeria, Kenya, Ghana and South Africa have been playing a leading role in this regard.
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