African payment startup Chipper Cash raises $13.8M Series A

The startup call beckoned and after launching Chipper Cash in 2018, the duo persuaded 500 Startups and Liquid 2 Ventures– co-founded by American football legend Joe Montana– to back their company with seed funds.

Deciens Capital creator Dan Kimerling confirmed the funds lead on the financial investment and review of Chipper Cashs payment value and volume metrics.

Chipper Cash does not release audited financial information, but does share internal performance accounting with financiers. Deciens Capital and Raptor Group co-led the startups Series A funding, with repeat support from 500 Startups and Liquid 2 Ventures.

” Were now at over one and a half million users and doing over a $100 million dollars a month in volume,” Serunjogi informed TechCrunch on a call.

Two years and $22 million in total capital raised later, Chipper Cash uses its mobile-based, no fee, P2P payment services in seven nations: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.

The raise caps an event-filled run for the San Francisco-based payments company, established 2 years ago by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled.

Parallel to its P2P app, the start-up also runs Chipper Checkout, a merchant-focused, fee-based mobile payment item that produces the revenue to support Chipper Cashs free mobile-money service.

African cross-border fintech startup Chipper Money has closed a $13.8 million Series A financing round led by Deciens Capital and prepares to employ 30 new staff globally.

The company will utilize its newest round to employ up to 30 individuals throughout operations in San Francisco, Lagos, London, Nairobi and New York, according to Serunjogi.

The two concerned America for academics, met in Iowa while studying at Grinnell College and ventured out to Silicon Valley for stints in huge tech: Facebook for Serunjogi and Flickr and Yahoo! for Moujaled.

Image Credits: Chipper Cash

” You know on the planet we reside in, the AML side is very important, so its a location that we want to invest in from the start,” said Serunjogi.

With the round announcement, Chipper Cash likewise revealed a business social duty initiative. Connected to present U.S. occasions, the startup has formed the Chipper Fund for Black Lives.

” Weve been huge beneficiaries of the kindness and openness of this nation and its entrepreneurial spirit,” discussed Serunjogi. “But maturing in Africa, weve had the ability to browse [the U.S.] without the injuries and luggage our African American friends have actually gone through living in America.”

The Chipper Fund for Black Lives will give five to 10 grants of $5,000 to $10,000. “The strategy is to provide that to … individuals or causes who are enhancing social justice reforms,” said Serunjogi.

Chipper Cash has actually already induced a new compliance officer, Lisa Dawson, whose background consists of stints with the U.S. Department of Treasurys Financial Crimes Enforcement Network and Citigroups anti-money laundering department.

In Africa, Chipper Cash has actually put itself in the continents significant digital payments markets. As a sector, fintech has actually become Africas highest funded tech space, receiving the bulk of an approximated $2 billion in VC that went to startups in 2019.

He confirmed Dawsons role aligned with getting Chipper Cash all set to meet regulative requirements for brand-new markets, however decreased to call particular nations.

Image Credits: TechCrunch

Progressively, Nigeria has ended up being the most considerable fintech market in Africa, with the continents largest economy and population of 200 million.

Those ventures, and a number of the continents developed banks, remain in a race to develop market share through financial addition.

In 2019, Chinese investors put $220 million into OPay (owned by Opera) and PalmPay– two fledgling start-ups with strategies to scale first in West Africa and then the broader continent.

Over the next a number of years, anticipate to see market occasions– such as stops working, ipos or acquisitions– figure out how well-funded payment startups, consisting of Chipper Cash, fare in Africas fintech arena.

By numerous estimates– including The Global Findex Database– the continent is house to the biggest portion of the worlds unbanked population, with a sizable number of underbanked customers and SMEs.

Chipper Cash broadened there in 2019 and deals with competitors from a variety of gamers, consisting of regional payments venture Paga. More recently, outside entrants have actually leapt into Nigerias fintech scene.

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