African cross-border fintech startup Chipper Cash has raised a$ 6 million seed round led by Deciens Capital.
The San Francisco-based company offers mobile-based , no reward, P2P payment business in six countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda and Kenya.
” Southern Africa is an area we’re looking to expand to in 2020 ,” he told TechCrunch on a summon. Chipper Cash won’t yet disclose which countries that have been able to entail.
The digital busines startup’s had a hectic 12 months in an momentous year overall for Africa’s fintech vistum. After running live in 2018, Chipper Cash raised $ 2.4 million in May 2019 in a grain round that included assistance from 500 Startups and Liquid 2 Ventures — co-founded by American football icon Joe Montana.
In September, Chipper Cash expanded into what is now arguably Africa’s largest fintech sell, Nigeria. With its last round, the startup has raised more than$ 8 million in seed fund. Participants in the$ 6 million financing include previous investors, and a few cases brand-new sponsors, such as Boston-based Raptor Group .
The fintech company, co-founded by Ghanaian Maijid Moujaled , now has more than 600,000 active useds and has processed more than 3 million deals on its no-fee, P2P, cross-border mobile-money payments commodity, according to Serunjogi.
The startup too guides Chipper Checkout: a merchant-focused, fee-based C2B mobile fee commodity that generates the revenue to support Chipper Cash’s free mobile-money business.
The startup’s schemed move to Southern Africa — residence to the continent’s second-largest and most advanced economy of South Africa — will place Chipper Cash in all three corners of the Africa’s triangle of contributing digital finance markets.
There are hundreds of fees startups across Africa looking to bring the continent’s sizable unbanked and underbanked people onto mobile busines applications.
Some commodities, such as M-Pesa in Kenya, have succeeded in reaching tens of millions. However, one characteristic of successful African fintech makes is that their employment has been geographically segregated, with few apps able to scale widely across borders.
Chipper Cash brags its ability to grow its P2P product in several countries in 2019, including Nigeria.
Serunjogi clarified the imperative to move to the West African country earlier this year. “Nigeria is the largest economy and most populous country in Africa. Its fintech industry is one of the most advanced in Africa, up there with Kenya and South Africa, ” he told TechCrunch in May.
Apparently a number of actors were on the same wavelength when he said that, as Nigerian fintech gained $360 million in VC in November — the equivalent of approximately one-third of all the startup capital raised in Africa in 2018, harmonizing to Partech stats.
Part of this crusade influx was directed toward possible Chipper Cash competitors.
In two separate rounds, Chinese investors introduced $220 million into OPay and PalmPay — two fledgling fee startups with plans to scale in Nigeria and the broader continent. That fund dwarfs rounds raised by other P2P-focused fintech business, such as Chipper Cash.
On how the startup will compete with these new participates with big coffers, Serunjogi points to Chipper Cash’s gratis-payment structure, among other factors.
” Money doesn’t buy concoction marketplace fit. It doesn’t buy ultimate success in this space ,” he said.
” By furnish our produce free of charge, we’re not in a pricing struggle or participating on a dollar-to-dollar basis. We’re in a unadulterated practicality fighting on who can provide the most value to our useds. We’re quite comfortable with its own position, and our long-term value proposition will speak for itself over period ,” Serunjogi added.
At the end of 2020 we can review where Chipper Cash and competitive programmes stand on country reach and volumes in the startup race to scale digital remittances across Africa’s 1.2 billion people.