Published On: Thu, Nov 19th, 2020

African fintech startup Chipper Cash raises $30M corroborated by Jeff Bezos

African cross-border fintech startup Chipper Cash has lifted a $30 million Series B appropriation turn led by Ribbit Capital with appearance of Bezos Expeditions — a personal VC criticism of Amazon CEO Jeff Bezos.

Chipper Cash was founded in San Francisco in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The association offers mobile-based, no fee, P2P remuneration services in 7 countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.

Parallel to a P2P app, a startup also runs Chipper Checkout — a merchant-focused, fee-based remuneration product that generates a income to support Chipper Cash’s giveaway mobile-money business. The association has scaled to 3 million users on a height and processes an normal of 80,000 exchange daily. In Jun 2020, Chipper Cash reached a monthly payments value of $100 million, according to CEO Ham Serunjogi .

As partial of a Series B raise, a startup skeleton to enhance a products and geographic scope. On a product side, that entails charity some-more business remuneration solutions, crypto-currency trade options, and investment services.

“We’ll always be a P2P financial send height during a core. But we’ve had direct from a users to offer other value services…like purchasing cryptocurrency resources and creation investments in stocks,” Serunjogi told TechCrunch on a call.

Image Credits: Chipper Cash

Chipper Cash has combined beta dropdowns on a website and app to buy and sell Bitcoin and deposit in U.S. bonds from Africa — a latter by a partnership with U.S. financial services association DriveWealth.

“We’ll launch [the batch product] in Nigeria initial so Nigerians have a choice to buy fractional bonds — Tesla shares, Apple shares or Amazon shares and others — by a app. We’ll enhance into other countries thereafter,” pronounced Serunjogi.

On a business financial services side, a startup skeleton to offer some-more API payments solutions. “We’ve been removing a lot of requests from people on a P2P platform, who also have business enterprises, to be means to collect payments for sale of goods,” explained Serunjogi.

Chipper Cash also skeleton to use a Series B financing for additional nation expansion, that a association will announce by a finish of 2021.

Jeff Bezos’s subsidy of Chipper Cash follows a new fibre of events that has towering a prominence of Africa’s startup scene. Over a past decade, a continent’s tech ecosystem has been one of a fastest flourishing in a universe by year year-over-year enlargement in try collateral and startup formation, strong in countries such as Nigeria, Kenya, and South Africa.

Africa Top VC Markets 2019

Image Credits: TechCrunch/Bryce Durbin

Bringing Africa’s vast unbanked race and underbanked consumers and SMEs online has factored prominently. Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

As such, fintech has turn Africa’s highest-funded tech sector, receiving a bulk of an estimated $2 billion in VC that went to startups in 2019. Even with a fast try appropriation expansion over a final decade, Africa’s tech stage had been opening light, with usually one famous unicorn (e-commerce try Jumia) a handful of exits, and no vital open share offerings. That altered final year.

In Apr 2019, Jumia — corroborated by investors including Goldman Sachs and Mastercard — went open in an NYSE IPO. Later in a year, Nigerian fintech association Interswitch achieved unicorn standing after a $200 million investment by Visa.

This year, Network International purchased East African payments startup DPO for $288 million and in Aug WorldRemit acquired Africa focused remittance association Sendwave for $500 million.

Stripe acquires Nigeria’s Paystack for $200M+ to enhance into a African continent

One of a some-more poignant liquidity events in African tech occurred final month, when Stripe acquired Nigerian remuneration gateway startup Paystack for a reported $200 million.

In an email to TechCrunch, a orator for Bezos Expeditions reliable a fund’s investment in Chipper Cash, though declined to criticism on serve skeleton to behind African startups. Per Crunchbase data, a investment would be a initial in Africa for a fund. It’s value observant Bezos Expeditions is not connected to Jeff Bezo’s hallmark business venture, Amazon.

For Chipper Cash, a $30 million Series B lift caps an event-filled dual years for a San Francisco-based payments association and founders Ham Serunjogi and Maijid Moujaled. The dual came to America for academics, met in Iowa while study during Grinnell College and ventured out to Silicon Valley for stints in large tech: Facebook for Serunjogi and Flickr and Yahoo! for Moujaled.

Chipper Cash founders Ham Serunjogi (R) and Maijid Moujaled; Image Credits: Chipper Cash

The startup call beckoned and after rising Chipper Cash in 2018, a twin assured 500 Startups and Liquid 2 Ventures — co-founded by American football fable Joe Montana — to behind their association with seed funds. The startup stretched into Nigeria and Southern Africa in 2019, entered a payments partnership with Visa in Apr and lifted a $13.8 million Series A in June.

Chipper Cash owner Ham Serunjogi believes a subsidy of his association by a important tech figure, such as Jeff Bezos (the world’s richest person), has advantages over his venture.

“It’s a large understanding when a universe category financier like Bezos or Ribbit goes out of their honeyed mark to a new area where they formerly haven’t finished investments,” he said. “Ultimately, a leader of those things function is a African tech ecosystem overall, as it will move some-more investment from firms of that size to African startups.”

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