Chipper Cash, an African borderless payments company has announced a Series C extension round of over $150 million to continue to offer value in the mobile payments market. The round was led by Sam Bankman-Fried’s cryptocurrency exchange platform, FTX, with reinvestments by SVB Capital that led the first Series C round of $100 million early this year, as well as Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, and Tribe Capital.
Chipper Cash: Africa’s unicorn
The earlier Series C raise this year was to facilitate their introduction of new products into the market and the necessary buoying up of their team. Following that round, Chipper Cash’s CEO, Ham Serunjogi had left undisclosed the actual value of the startup, triggering debates as to the unicorn status of the dynamic payments company. This new investment proves that the startup had, for a while, hit the billion-dollar status, taking their valuation to a whopping $2 billion, with a total Series C funding of $250 million, and total funding of about $305 million.
Headquartered in San Francisco, California, Chipper Cash was founded by Ham Serunjogi and Maijid Moujaled in 2018 to enable a seamless borderless platform to send and receive money. Its services are patronized across the United Kingdom and eight African countries–Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, and Kenya.
The company also ventured into the American markets last month with the country responsible for nearly 30% of the international remittances to sub-Saharan Africa. For the most part, these remittances have come through a host of other competitors such as PayPal, Sendwave, Remitly, Monegram, etc. However, Serunjogi claims that Chipper Cash’s offering of remittance is considerably and comparatively cheaper than those of its competitors.
Their recent partnership with Twitter, in the launch of its Tip Jar feature that would enable creators on the Twitter platform to receive money, is one that shows its commitment to making significant entry into the American market. The Tip Jar Twitter feature is already available to African Chipper Cash users. Aside from these products which it utilizes in offering value to the African and global markets, Chipper Cash is yet keen on another partnership that holds the key to the future of tech for Africa.
Partnership with FTX: Plotting a crypto future
Cryptocurrency trading is growing considerably on the African continent, with Africa proving to be a veritable frontier for crypto trading. Through the use of cryptocurrencies, business owners and entrepreneurs in Africa are able to bypass the weakened impact of national currencies and set steady prices for their goods based on their real market value. With the ease of Peer-to-peer payment methods in crypto, likewise, workers are able to receive pay for remote work seamlessly and efficiently with the least hassles from traditional banking systems.
FTX stands as one of the biggest cryptocurrency derivatives exchanges globally, with an over $25 billion valuation. With this raise, there is also the huge benefit of a partnership with the crypto giants, to enable the adoption of crypto within and Africa and beyond. This partnership would help to enable ease of payments into Chipper wallets using Chipper Cash’s Network API.
The FTX head, Bankman-Fried states that,
The way forward
Africa’s successes this year continue to spiral with an estimated $3.7 billion already coming into the continent in investment. A bulk of this investment has graced fintech companies, especially in Nigeria, with over six companies enjoying unicorn status on the continent. Africa is a continent of promise, and the impact that startups are making in the highly promising sector of fintech is strongly significant.