The boom of financial technology in Africa cannot be denied as startups on the continent have grown attractive to potential investors recording ground-breaking amounts in funding in 2020. Chipper Cash closes $100 million deal in a Series C round making it one of the other African startups that have reached unicorn status.
After raising a Series C financing that would allow it to grow its workforce and deliver more products, the three-year-old firm, Chipper Cash closes $100 million deal is now valued at $1 billion as it facilitates cross-border payments at no fees.
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After years of phenomenal growth, Chipper Cash closes $100 million deal
Launched in 2018 by Ham Serunjogi and Maijid Moujaled, Chipper Cash has been connected with tremendous success, and it is now regarded as one of Africa’s fastest-growing fintech firms. The African cross-border fintech business closed a $13.8 million Series A round from Deciens Capital and other investors in June 2020.
In November 2020, the African cross-border fintech startup raised $30 million Series B led by Ribbit Capital and Jeff Bezos fund Bezos Expeditions. Hence, Chipper Cash has gone through three rounds totalling $143.8 million in a year. However, when the $8.4 million raised in two seed rounds back in 2019 is included, this number increases to $152.2 million.
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If the numbers are anything to go by, then the company has shown tremendous growth. Chipper Cash is present in 7 African countries; Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya and has recently expanded outside Africa in the UK. Ham Serunjogi said, “We’ve expanded to the U.K., it’s the first market we’ve expanded to outside Africa.”
Apart from plans to expand, Chipper Cash closes $100 million deal to increase its workforce with plans to hire 100 staff throughout the year. According to TechCrunch, the number of users on Chipper Cash has increased to 4 million, up 33% from last year. And while the company averaged 80,000 transactions daily in November 2020 and processed $100 million in payments value in June 2020.
Other African companies at unicorn status
As Chipper Cash closes $100 million deal allowing it to achieve unicorn status, we take a look at some fintechs this year that have reached this milestone too recently.
In March this year, Flutterwave the mobile payments company was the only privately owned fintech company that had reached unicorn status. Flutterwave announced that it had closed a $170 million Series C round after valuing at $1 billion.
The mobile payments company based in San Francisco and Lagos has closed a $170 million Series C round hence Flutterwave valued at $1 billion today making it a Unicorn company. The round was led by new and existing investors like US hedge fund and investment firm Tiger Global, Avenir Growth Capital, DST Global, Green Visor Capital, Early Capital Berrywood, Greycroft Capital, Insight Ventures, PayPal, Salesforce Ventures, Tiger Management, and Worldpay FIS 9yards Capital.
Read more: Mobile payments company, Flutterwave valued at $1 billion after raising $170 million in funding
Nigeria’s OPay could join the companies at unicorn status soon.
Nigeria-based digital payments company OPay reportedly in talks to secure $400 million in funding which will allow it to expand to more countries on the continent. The company is in talks with investors to raise funding that could see its valuation go above $1.5 billion which is three times its current valuation.
OPay raised a total of $10 million in 2019 in two funding rounds, $50 million in June and $120 million in November in a Series B round. This funding came from investors like Sequoia Capital, IDG Capital, Source Code, GSR Ventures, Opera and Meituan-Dianping.
Read more: Nigerian fintech OPay reportedly in talks to secure $400 million in funding
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