Chipper Cash Raises Strong Funding in Series B Round

By Thomas Price Monday, December 7, 2020

The financial world is increasingly becoming more reliant on digital transactions, especially as high-speed internet and smartphones are becoming more and more available to larger portions of the population. As this becomes more widespread, app-based payment platforms are rising in all different areas. Companies like Venmo, PayPal, Klarna, and Quadpay have all grown significantly in recent years. However, there is still room for more innovation and new apps in the market. This is where Chipper Cash comes into play. A relatively new African cross-border fintech startup, Chipper Cash offers a Person to Person payment platform expanded for new markets. So, what exactly does Chipper Cash do, and perhaps equally important, how did they do in their most recent round of funding?

What Is Chipper Cash?

Chipper Cash, at its core, is another mobile payment platform for personal users to utilize when transferring small to medium amounts of money. Founded in 2018 in San Francisco by Ugandan Ham Serunji and Ghanian Maijid Moujaled, Chipper Cash is more unique than the average payment app due to the number of different nations and therefore currencies it allows payments between. In fact, Chipper Cash is currently available for use in seven different countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, and Kenya. Users in these countries can transfer money from user to user within their own nation at no additional fee. But more interesting is the ability to send and transfer money across borders, and therefore between different currencies, at a low rate.

Chipper Cash is also equipped with a variety of other features, including buying and selling cryptocurrency through the app as well as stocks. Additionally, the company offers a virtual visa card that the app can provide in a sense. In conjunction with Chipper Cash, the startup also runs Chipper Checkout.

Chipper Checkout is a merchant-focused payment product that works on a fee-based model that helps support the free mobile-money business of Chipper Cash. What is more promising than all other factors is the significant growth. As it stands, Chipper Cash has around 3 million users. More exciting than this is that Chipper Cash is gaining 10,000 new users every single day with a new transaction taking place every .03 seconds. This adds up to about 80,000 transactions taking place on a daily basis. This meteoric growth in a region still ripe for major expansion has investors very excited.

Chipper Cash’s Series B Funding Round

In Chipper Cash’s Series B funding round, the startup raised $30 million, led mostly by global investment firm, Ribbit Capital. Another notable investor in this round of funding for Chipper Cash was Bezos Expeditions, which is the personal venture capital fund of Amazon founder and owner, Jeff Bezos. Chipper Cash plans to use this $30 million to expand both the scope of their products as well as offering their services to more and more countries. The new countries that will be added to Chipper Cash’s range will be announced at the beginning of 2021. This is especially exciting news considering the potential in the Africa region. In fact, around 66% of the entire 1 billion Sub-Saharan population do not have any bank accounts at all, with many more being considered underbanked. As a result of this, the African fintech market has become the region’s highest funded tech sector. Of the $2 billion invested from venture capitalists in 2019, the vast majority of that funding went into the fintech market. Therefore, Chipper Cash represents a major step for the African region fintech market considering their notable success and the trajectory of their growth.

Final Conclusions

Chipper Cash is tapping into two extremely potent factors happening right now. The first is the mobile payment platform market which is growing as more and more transactions have become digital. The other is the fintech market in the Africa region where hundreds of millions of people remain without a strong financial infrastructure. Chipper Cash, especially with transactions taking place across different countries’ borders, can be the financial structure that much of the population is still without and could use.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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