Africa-Focused Fintech Chipper Cash Weighs Possible Sale of Business – Fintech Bitcoin News

One of Africa’s fintech giants, Chipper Cash, is said to be weighing the possibility of selling the business or bringing in new investors. According to the CEO of the FTX and Silicon Valley Bank-backed fintech startup, Chipper Cash had insignificant exposure to both SVB and Signature Bank.

Chipper Cash ‘Never Sought to Be Acquired’

The FTX and Silicon Valley Bank (SVB) backed-African fintech giant, Chipper Cash, is weighing options including the sale of the business or bringing in new investors, a Bloomberg report that cites unnamed sources has said. According to the report, the fintech, which began exploring its options before SVB’s abrupt collapse, is yet to make a final decision on which course of action it will take.

How To Get Free Crypto  

As previously reported by News in late 2021, Chipper Cash successfully raised $150 million in a Series C extension that was led by the now-collapsed crypto exchange FTX. SVB, which led the first Series C, also participated in the round as did Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, and Tribe Capital.

However, following a turbulent 2022 which climaxed with FTX’s collapse, Chipper Cash saw its valuation drop from $2 billion in the fourth quarter (Q4) of 2022 to $1.25 billion by Dec. 2022. Faced with rising costs, Chipper Cash also trimmed its workforce.

Insignificant Exposure to SVB

Meanwhile, the shutdown of SVB by U.S. authorities is reported to have fueled speculation that Chipper Cash — a client of SVB — would be hard hit by the bank’s demise. However, in a statement sent to Bloomberg, Chipper Cash insisted that the owners had never considered selling the business.

“It’s been fairly common practice for us to receive various M&A proposals from different parties, which we evaluate to varying degrees. That being said, we have never sought to be acquired,” the fintech reportedly said.

Coinbase Banner  

In his March 12 message to stakeholders, Chipper Cash co-founder and CEO Ham Serunjogi claimed the fintech unicorn had insignificant exposure to both SVB and Signature Bank. At the time of SVB’s collapse, Chipper Cash had about $1 million held at the bank.

Serunjogi also sought to downplay SVB’s perceived influence on the fintech by pointing to the collapsed bank’s shareholding in Chipper Cash.

“SVB wasn’t the only investor in that round – we had several other new and existing investors participate in the $100m round – and SVB owns a very small part of Chipper ~2%. Chipper is very fortunate to have a very broad and supportive investor base that has supported us from our earliest days and continues to do so today,” the CEO said.

Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

FreeBitcoin Banner  

Image Credits: Shutterstock, Pixabay, Wiki Commons

Read disclaimer

Go to Source
Author: Terence Zimwara

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.