Chipper Cash, a leading pan-African payment company that simplifies cross-border transactions, is reported to be considering a potential sale or seeking new investors.
Ham Serunjogi, the Ugandan tech entrepreneur who heads the company has reportedly embarked on this strategic move to further strengthen its position in the rapidly evolving digital payments market in Africa.
Bloomberg received reports from sources who are familiar with the matter that Chipper Cash had already started checking out potential options before the recent collapse of Silicon Valley Bank. The startup is still in the process of evaluating its options and has not yet made any final decisions.
The company said that it’s been fairly common practice for them to receive various M&A proposals from different parties, which they evaluate to varying degrees and that we have never sought to be acquired. The company said this in response to questions.
Chipper Cash, a cross-border payment platform co-founded in 2018 by Serunjogi and his Ghanaian business partner Maijid Moujaled, provides mobile-based, fee-free peer-to-peer payment services in seven African countries such as Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, and Kenya.
Chipper Cash Reason for the move
The recent move by the fintech startup follows a 2021 fundraising round, where it raised $250 million, led by Silicon Valley Bank (SVB) and the now-defunct FTX.
Since its establishment almost six years ago, the startup has secured $300 million in venture capital funding at a $2.2 billion valuation. It has also established an operational presence in the UK, which allows it to facilitate money transfers from the country to African markets.
Silicon Valley Capital, the venture capital arm of the now-collapsed Silicon Valley Bank, played a significant role in the company’s fundraising efforts, leading multiple funding rounds. This made it currently hold a stake of approximately 2 percent in the San Francisco-based company.
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