CHAKA OPENS GLOBAL INVESTMENT IN NIGERIA
Lagos-based fintech startup Chaka opens global investment to Africa’s most populous and economic country, Nigeria. This came as a result of the startup aim of global expansion from its local base.
It’s understood, the company has positioned itself as a passport to local and global investing platform, having met the basic requirement by KYC. It was also figured out that the startup developed an API and a platform that allows Nigerians with a single bank account to create trading accounts to purchase global blue chip and Nigerian stocks.
This was figured out as the company’s seed-stage went live with its mobile-based platform that offers Africa’s most populous and economy stock trading in over forty (40) countries. While on the other hand, it was confirmed the startup platform has already established a partnership with two (2) stockbrokers that will facilitate stock purchases, namely the U.S. based DriveWealth and Citi Investment Capital.
Responding to this development, the founder and CEO of Chaka ‘Tosin Osibodu’ made it clear that, investors can start with as little as 1,000 Naira or $10 in order to create a local and global wallet that will be used to trade. Adding that:
“Embedded in our offer is the ability to buy on the local stock market… we make it more seamless than usual, and assets… from this whole universe outside the continent”.
To ascertain the value of Chaka’s market ambition in this subject (Chaka opens global), the CEO said: “Our outlook is that within Nigeria… between one and two million people are strongly in the market for this product”. Adding that there are set out plans to go beyond stocks, “Our product road-map includes not just equities, but other investment products people are interested in – mutual funds, fixed income products, and eventually even cryptocurrencies – so that really expands our bounds”.
Although, the platform’s service isn’t free, but is structured as 100 nairas or $3 for its local and international trades respectively.
With regards to the latest development (Chaka opens global), it’s understood the startup is yet to disclose funding, however, Chaka confirmed it has received pre-seed funding from Nigerian investor and founder ‘E’ – Iyinoluwa Aboyeji.
According to an analyst, Chaka’s founder had the idea to form the venture, in phases, as a result of challenges in attempting to access well-known trading platforms.
Meanwhile, there isn’t a question about its position at the moment, knowing that the startup is in a firm position as regards African fintech. And also to note is the fact that this sector receives the bulk of Africa’s VC, according to WeeTracker, with an appreciable proportion of VC being directed towards people-to-people payment startups, coupled with personal investment platforms.
Chaka in its own way of mitigating the Forex risk of Naira volatility, however, converts locally to dollars and funds client trades in the U.S. dollar. Chaka’s agreement to intra-day forward rates at 9 am daily is locked until 2 pm for transactional activity on its platform.
It’s been figured out in recent years that Nigeria has become a hub for legitimate business in Africa, and as such a hotspot for startup formation and VC activity.
- What’s your take as Chaka opens global investment?
Be the first to comment