Chipper Cash, an African fintech firm that specializes in facilitating cross-border payments, recently closed a $100 million Series C funding round. Leading the third fundraising round of Chipper Cash over the past twelve months is venture capital (VC) firm, SVB Capital. The VC firm US Hi-Tech Commercial Bank is an investment arm of Silicon Valley Bank.
The New African Fintech Unicorn
Other notable participants in this Series C round include Dacion Capital, Ribbit Capital as well as the Jeff Bezos-backed Bezos Expedition. Since the conclusion of this Series C funding round, Chipper Cash has now raised a total of $143.8 million in just one year. As a result, some observers estimate the valuation of Chipper Cash to be between one and two billion dollars.
Notably, with this capital increase, Chipper Cash has become the latest African fintech firm to attract the interest of leading venture capital firms. Other African fintech start-ups that have similarly received support from major VC firms include Flutterwave, Timebank and Opay.
Crypto Services and CBN Prohibition
Chipper Cash has raised significant capital in a short period of time as it expanded the range of products it offers. according to a report good, the fintech firm now offers cryptocurrency trading options as well as other business payment solutions. The report also quoted Fintech CEO Haim Serunjogi as explaining some of the factors that prompted Chipper Cash to add new services. He said:
Our approach to developing products and adding products is based on what our users find valuable. As you can imagine, crypto is a technology that has been widely adopted in Africa and many emerging markets. That’s why we want to give them the power to access crypto and be able to buy, hold and sell crypto whenever they want.
Nevertheless, the CEO clarified that Chipper Cash is not currently providing crypto-related services to its customers in Nigeria. He cited an anti-crypto directive from the Central Bank of Nigeria (CBN) as the only reason why the fintech firm cannot expand its cryptocurrency-related services to Nigerians.
Meanwhile Serunjogi says his company is still “awaiting any development in Nigeria that allows it to be freely offered again.”
What do you think about Chipper Cash’s latest funding round? You can share your thoughts in the comment section below.
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