African cross-border payments company, Chipper Cash, has completed its Series C extension funding round. The round saw the company raise $150 million and attain a market valuation of over $2 billion.
This comes on the heels of its initial Series C funding where the company raised $100 million in a funding round led by SVB. Following this, CEO Ham Serunjogi touted the company as the “most valuable private startup in Africa.”
Cumulatively, the company has raised over $300 million in funds since its seed rounds in 2019. FTX’s investment in this latest round means it joins the list of angel investors. Alongside Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, and Tribe Capital, all companies have contributed to the funding rounds.
Chipper Cash: A Moving Train
Chipper Cash was established in 2018. The goal was to provide free peer-to-peer payment services for Africans through its app. This service is used in seven countries including Nigeria, Ghana, Uganda, Rwanda, Kenya, South Africa, and Tanzania.
With more than four million users, Chipper Cash is venturing into Europe with its recent expansion into the United Kingdom. Also recently, the company was selected by Twitter as the payment platform for African creators who use its Tip Jar feature.
Chipper Cash is not the first to offer peer-to-peer payment services for Africans. However, it has the cheapest remittances available on the market. Given the high transaction cost associated with sending money to Africa, the low fees are a huge relief for many. Additionally, the cross-border payments company will allow the sending of money from Africa to the United States.
This has increased the appeal of Chipper Cash to the audience even as it seeks to control a greater share of the African remittances market.
There’s Room for More
Speaking about the increase in crypto adoption and the potential of the African market, CEO of FTX, Sam Bankman-Fried said, “Despite the recent growth in Africa, moving money across the continent is still slow and expensive.”
By partnering with Chipper Cash, Bankman-Fried hopes to make “money transfer as simple as a text message.” He also wants to accelerate the rate of crypto adoption within and beyond Africa.