There seems to be a brand new deal with African fintech start-ups in latest instances. Owing to this, the fintech area in Africa has change into the most important funded sector, per the most recent figures. In 2019, African fintech start-ups obtained $2 billion in enterprise capital funding.
Quick ahead to 2020 and the thrill continues unabated. Just lately, American e-payments agency Stripe ventured into the African e-commerce market by buying Nigerian startup agency Paystack. Additionally, Dubai’s Community Worldwide acquired Nairobi-based fintech DPO Group for $288 million. As well as, WorldRemit Ltd., a UK. on-line cash switch firm, acquired Africa centered remittance firm Sendwave for $500 million.
The newest African fintech to draw the eye of enterprise capitalists is Chipper Cash. The agency provides a cross-border, peer-to-peer funds service in African international locations akin to Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.
The agency at present has three million customers on its platform and processes a median of 80,000 transactions every day, based on Techcrunch. It raised $30 million in a Sequence B funding spherical led by Ribbit Capital, a U.S based mostly VC agency that invests in early-stage startups.
One of many members within the Sequence B funding spherical is Bezos Expeditions, the non-public VC fund of Jeff Bezos, the founding father of Amazon and the world’s richest man. In line with Crunchbase knowledge, the funding in Chipper Cash could be the primary in Africa for Bezos Expeditions.
Jeff Bezos, world’s richest man. Picture Credit score: Enterprise Insider
It seems Bezos’ curiosity within the fintech startup was precipitated by its success in elevating funding and its future prospect. In May 2019, it raised $2.four million in seed funding in a spherical led by Deciens Capital. Seven months later, it raised $6 million in Sequence A funding led by Deciens Capital and Raptor Group. Between these two intervals, its customers elevated from 70,000 to 600,000.
Chipper Cash was based two years in the past in San Francisco by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The 2 met whereas finding out at Grinnell Faculty. After faculty, they’d stints in massive tech companies: Fb for Serunjogi and Flickr and Yahoo! for Moujaled.
Co-founder Serunjogi believes having the backing of Bezos has unimaginable advantages past the enterprise. “It’s a big deal when a world-class investor like Bezos or Ribbit goes out of their sweet spot to a new area where they previously haven’t done investments,” he mentioned, based on Techcrunch.
“Ultimately, the winner of those things happening in the African tech ecosystem overall, as it will bring more investment from firms of that calibre to African startups.”
In June 2020, Chipper Cash reached a month-to-month funds value of $100 million, Serunjogi, the startup’s chief govt mentioned. It plans to increase its merchandise to incorporate enterprise funds options, crypto-currency buying and selling choices, and funding service and operations in different international locations.
To this finish, it has added beta dropdowns on its web site and app to purchase and promote Bitcoin and put money into U.S. stocks from Africa — the latter by way of a partnership with U.S. monetary providers firm DriveWealth.
“We’ll launch [the stock product] in Nigeria first so Nigerians have the choice to purchase fractional stocks — Tesla shares, Apple shares or Amazon shares and others — by way of our app. We’ll increase into different international locations thereafter,” mentioned Serunjogi.
On the enterprise monetary providers facet, the startup plans to supply extra API cost options. “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,” defined Serunjogi.