Unicorn Fintech Chipper Cash is set to buy Zambian fintech pioneer Zoona
Chipper Cash has acquired Zoona Transactions International, a financial technology firm based in Zambia. Chipper Cash, which claims 5 million users, can now provide even more services to those customers thanks to this purchase. These include expanded online capabilities and access to a wider network of agents. The corporation sees this as a means to further expand its operations in Zambia.
Chipper Cash’s VP of Corporate Development, Laura Kennedy, says that the company will benefit from the purchase of Zoona because of “incredible innovation, a great partner network, complementary products and services, and talented in-country teams.” Brett Magrath, co-founder, and CEO of Zoona, sees the purchase as a way to use the combined talents of his company and the acquired one to become Africa’s go-to financial services provider.
When it was founded in 2008, Zoona quickly became a frontrunner in Zambia’s burgeoning tech scene. The company’s Tilt service has since made it possible for Zambians to make cash payments, use its digital channel, or take advantage of its network of more than 450 interoperable agents to send and receive money with banks and money transfer services. Since its inception, the fintech has handled over $3 billion in transactions, making it a key player in the burgeoning mobile money sector across Africa. When the Zambian firm decided to shift its attention to the business-to-business market in 2020, it sold its Malawian operations to the payments firm Mukuru, headquartered in Cape Town.
“Bringing these companies together under the Chipper umbrella will mean we can open up even more borders, bringing quality financial services to life in more countries and connecting more people across the continent,” Kennedy added.
Chipper Cash was co-founded in 2018 by the current president and CEO, Ham Serunjoji, and Maijid Moujaled to facilitate free domestic and international money transfers throughout Africa. It is currently worth $2.2 billion after receiving $300 million in venture capital investment. The United Kingdom (UK) and the United States (US) aren’t the only places you may have access to its services; Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, and Kenya can as well.
After announcing their Series C investment, CEO Ham Serunjogi told TechCrunch that Chipper Cash was “the most valuable private firm in Africa,” albeit he did not provide a numerical figure.
The ambiguity of the phrase has spawned several discussions as to whether or not Chipper Cash is a unicorn. With this expansion round, Chipper Cash’s valuation has risen to a little over $2 billion; therefore, Serunjogi can affirm that it is.
Chipper Cash was vague about the deal’s monetary particulars. Authorities must greenlight the acquisition agreement before it can go forward.