SAN FRANCISCO-BASED, CHIPPER CASH RAISES ANOTHER $6M FOR ITS SOUTH AFRICAN EXPANSION
The payment startup Chipper Cash raises another $6M, an African startup that has emerged as a cross-border fintech, however, it was able to raise the said funds in its current seed-round led by Deciens Capital coupled with old investors.
Chipper Cash which offers a mobile platform, people-to-people payment services without charges – currently in six countries within the continent of Africa, includes Rwanda, Tanzania, Nigeria, Uganda, Ghana, and not excluding the startup’s core location, Kenya.
The digital finance company has made huge progress considering the overall eventful year for the African fintech scene. After the startup went live in 2018, it witnessed the supports of Liquid 2 Ventures – co-founded by ‘Joe Montana’ coupled with other 500 startups. Also, in May 2019 the company reportedly pulled $2.4 million seed round, and in September, Chipper Cash expanded into Africa’s most populous and economic country as well as Africa’s largest fintech market, Nigeria.
With regards to the current round, which saw ‘Chipper Cash raise another $6M’, and this meant the startup has raised over $8 million in seed capital, while participants in this latest round also include Boston based Raptor Group coupled with previous investors. Responding to this development, the company’s CEO ‘Ham Serunjogi’ made it clear that Chipper Cash will use the capital to grow its team and expand into new geographical regions.
Adding that: “Southern Africa is an area we are looking to move to in 2020”, but was not specific.
According to statistics, the fintech co-founded by Ghanaian ‘Maijid Moujaled’ currently has more than 600,000 active users and has processed more than 3 million transactions on its people-2-people, cross-border free payment platform – Serunjogi claim. While on the other hand, Chipper Cash also operates Chipper Checkout; a merchant-focused, which requires payment for its mobile payment product – the company’s product that generates the revenue required to sustain Chipper Cash’s free mobile-money transaction platform.
The company’s move to Southern Africa will potentially position Chipper Cash in three regions of Africa’s leading digital finance markets, and of course, the home of Africa’s second-largest and most advanced economy of South Africa. Should the move be implemented as proposed! Chipper Cash will be triangularly positioned within the continent of Africa.
Chipper Cash had previously made it clear that it has the ability to grow its people-2-people product in several countries in 2019, Nigeria inclusive. While on the other hand, products like M-Pesa in Kenya are currently accessible to tens of millions of Kenyans, meanwhile, looking at product advantages, few apps have been able to scale across borders irrespective of product geographical segregation.
Its’ also understood, Chipper Cash raising another $6M will practically place the company in an interface it could compete with other new products and big names, considering the payment structure with other factors, Serunjogi pointed out that,
“Money doesn’t buy a product-market fit. It doesn’t buy ultimate success in this space”. Adding that,
“By offering our product for free, we are not in a pricing war or competing on a dollar-to-dollar basis. We are in a pure utility war on who can provide the most value to our users. We are quite comfortable with our position, and our long-term value proposition will speak for itself over time”.
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