African Fintech Chipper Cash Considers Sale or New Investors

03/15/2023 23:51 • Metaverse Matters • 102 views

It is reported that the source revealed that the African cross-border payment platform Chipper Cash, supported by the Silicon Valley Bank (SVB) and the Cryptocurrency Exchange FTX, is weighing various options, including exploring the sale or finding new investors. Chipper Cash received a US $250 million financing led by FTX and SVB in 2021. FTX invested a total of US $40 million in it, and SVB owned 2% of its equity. At that time, its valuation was about US $2 billion. (Bloomberg)

Chipper Cash is considering selling and has been invested by Silicon Valley Bank and FTX

Analysis based on this information:

Chipper Cash, the African cross-border payment platform, is reportedly exploring various options, including a possible sale or search for new investors. The Silicon Valley Bank and Cryptocurrency Exchange FTX supported Chipper Cash, having granted the platform a $250 million financing round. FTX invested $40 million, while SVB owned 2% of its equity. The move towards seeking new investors or a potential sale could prove beneficial for the platform, as the African fintech industry continues to develop and expand across the continent.

Chipper Cash’s service, which facilitates cross-border payments without any fees or exchanges, has resonated with users across the continent. Over 80% of the platform’s registered users are from Africa, with over 4 million users joining since its launch in 2018. The company aims to further democratize financial services by making them more accessible and affordable for all Africans.

The decision to explore a new investor or sale may have stemmed from a desire to expand the platform’s services beyond payments further. With the support of investors like FTX and SVB, Chipper Cash now has the funding to expand its services portfolio and thus appeal to a broader market. In addition, a potential sale could provide substantial returns to existing investors and staff members, who may want to achieve an exit.

The move also reflects FTX’s growing interest in expanding its offerings in Africa’s burgeoning fintech market. Both FTX and SVB have expressed their enthusiasm for the platform’s growth potential in Africa. Their significant investment and support have allowed Chipper Cash to establish itself as one of the leading cross-border payment services in Africa.

In conclusion, the news of Chipper Cash exploring a potential sale or new investors could have exciting implications for the African fintech industry. With a growing demand for digital payment services, the fintech industry stands to benefit immensely from new and innovative products. By boosting Chipper Cash’s capability to heighten its services, Africa clients have an opportunity to continue enjoying the benefits of accessible quality resources.

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African Fintech Chipper Cash Considers Sale or New Investors

Chipper Cash is considering selling and has been invested by Silicon Valley Bank and FTX

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