African fintech startup Chipper Cash has raised $30 million, referred to as Series B funding. Ribbit Capital led the round with the participation of Bezos Expeditions – a venture capitalist fund of American billionaire Jeff Bezos.
Chipper cash was co-founded in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled in San Francisco, USA. The company offers mobile-based peer to peer payment services in seven African countries:
However, its transactions are free of charge.
The company processes about 80,000 transactions on a daily average. Meanwhile, it has scaled up to 3 million users so far.
We will always be an efficient P2P financial transfer platform. But our users have made demands that we offer other valuable services like purchasing cryptocurrencies and making stock investments, Serunjogi said.
Series B raise aims to help the company expand its geographical and product scope. The startup wants to offer other payment options like crypto trading and investment services. Chipper Cash has added options on its website and app to buy and sell Bitcoin and invest in US stocks from Africa.
However, on the geographical side, Chipper Cash plans to announce its expansions to other African countries by the end of 2021.
Jeff Bezos’ backing of the fundraising is due to the elevated activities of various startups all over Africa. Many of these startups are fintech, and they are majorly in Nigeria, Kenya, and South Africa.
Fintech is currently sitting as the highest-funded sector in Africa. In 2019, startups received about $2 billion in Venture Capital across Africa.
Jumia, for example, went public in an NYSE IPO in April 2019. Jumia’s listing was a result of investments by Goldman Sachs and Mastercard. Later that year, Interswitch achieved unicorn status after a $200 million investment by Visa.