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African payment startup Chipper Cash raises $13.8M Series A

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African payment startup Chipper Cash raises $13.8M Series A

African cross-border fintech startup Chipper Cash has closed a $13.eight million Series A funding spherical led by Deciens Capital and plans to rent 30 new employees globally.

The elevate caps an occasion crammed run for the San Francisco based mostly funds firm, based two years in the past by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled.

The two got here to America for teachers, met in Iowa whereas finding out at Grinnell College and ventured out to Silicon Valley for stints in huge tech: Facebook for Serunjogi and Flickr and Yahoo! for Moujaled.

The startup name beckoned and after launching Chipper Cash in 2018, the duo satisfied 500 Startups and and Liquid 2 Ventures — co-founded by American soccer legend Joe Montana — to again their firm with seed funds.

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

“We’re now at over one and a half million customers and doing over a $100 million {dollars} a month in quantity,” Serunjogi informed TechCrunch on a name.

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Chipper Cash doesn’t launch audited monetary knowledge, however does share inside efficiency accounting with traders. Deciens Capital and Raptor Group co-led the startup’s Series A financing, with repeat assist from 500 Startups and Liquid 2 Ventures .

Deciens Capital founder Dan Kimmerling confirmed the fund’s lead on the funding and assessment of Chipper Cash’s fee worth and quantity metrics.

Parallel to its P2P app, the startup additionally runs Chipper Checkout: a merchant-focused, fee-based cell fee product that generates the income to assist Chipper Cash’s free mobile-money enterprise.

The firm will use its newest spherical to rent as much as 30 individuals throughout operations in San Francisco, Lagos, London, Nairobi and New York — in keeping with Serunjogi.

Image Credits: Chipper Cash

Chipper Cash has already introduced on a brand new compliance officer, Lisa Dawson, whose background contains stints with the U.S. Department of Treasury’s Financial Crimes Enforcement Network and Citigroup’s anti-money laundering division.

“You know on the planet we reside within the AML facet is essential so it’s an space that we wish to spend money on from the get go,” mentioned Serunjogi.

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He confirmed Dawson’s position aligned with getting Chipper Cash prepared to fulfill regulatory necessities for brand spanking new markets, however declined to call particular nations.

With the spherical announcement, Chipper Cash additionally revealed a company social duty part to its enterprise. Related to present U.S. occasions, the startup has fashioned the Chipper Fund for Black Lives.

“We’ve been large beneficiaries of the generosity and openness of this nation and its entrepreneurial spirit,” defined Serunjogi. “But rising up in Africa, we’ve had been capable of navigate [the U.S.] with out the traumas and baggage our African American associates have gone by dwelling in America.”

The Chipper Fund for Black Lives will give 5 to 10 grants of $5,000 to $10,000. “The plan is to present that to…individuals or causes who’re furthering social justice reforms,” mentioned Serunjogi.

In Africa, Chipper Cash has positioned itself within the continent’s main digital funds markets. As a sector, fintech has develop into Africa’s highest funded tech house, receiving the majority of an estimated $2 billion in VC that went to startups in 2019.

Africa Top VC Markets 2019

Image Credits: TechCrunch

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Those ventures, and plenty of the continent’s established banks, are in a race to construct market share by monetary inclusion.

By a number of estimates — together with The Global Findex Database — the continent is residence to the biggest proportion of the world’s unbanked inhabitants, with a large variety of underbanked shoppers and SMEs.

Increasingly, Nigeria has develop into essentially the most vital fintech market in Africa, with the continent’s largest financial system and inhabitants of 200 million.

Chipper Cash expanded there in 2019 and faces competitors from plenty of gamers, together with native funds enterprise Paga. More lately, exterior entrants have jumped into Nigeria’s fintech scene.

In 2019, Chinese traders put $220 million into OPay (owned by Opera) and PalmPay — two fledgling startups with plans to scale first in West Africa after which the broader continent.

Over the subsequent a number of years, count on to see market occasions — corresponding to fails, acquisitions, or IPOs — decide how nicely funded fintech startups, together with Chipper Cash, fare in Africa’s fintech area.

Nigeria is turning into Africa’s unofficial tech capital

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