Africa-Focused Fintech Chipper Cash Weighs Possible Sale of Business

One of Africa’s fintech giants, Chipper Cash, is said to beryllium weighing the anticipation of selling the concern oregon bringing successful caller investors. According to the CEO of the FTX and Silicon Valley Bank-backed fintech startup, Chipper Cash had insignificant vulnerability to some 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 merchantability of the concern oregon bringing successful caller investors, a Bloomberg study that cites unnamed sources has said. According to the report, the fintech, which began exploring its options earlier SVB’s abrupt collapse, is yet to marque a last determination connected which people of enactment it volition take.

As antecedently reported by Bitcoin.com News successful precocious 2021, Chipper Cash successfully raised $150 cardinal successful a Series C hold that was led by the now-collapsed crypto speech FTX. SVB, which led the archetypal Series C, besides participated successful the circular arsenic did Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, and Tribe Capital.

However, pursuing a turbulent 2022 which climaxed with FTX’s collapse, Chipper Cash saw its valuation driblet from $2 cardinal successful the 4th fourth (Q4) of 2022 to $1.25 cardinal by Dec. 2022. Faced with rising costs, Chipper Cash besides trimmed its workforce.

Insignificant Exposure to SVB

Meanwhile, the shutdown of SVB by U.S. authorities is reported to person fueled speculation that Chipper Cash — a lawsuit of SVB — would beryllium hard deed by the bank’s demise. However, successful a connection sent to Bloomberg, Chipper Cash insisted that the owners had ne'er considered selling the business.

“It’s been reasonably communal signifier for america to person assorted M&A proposals from antithetic parties, which we measure to varying degrees. That being said, we person ne'er sought to beryllium acquired,” the fintech reportedly said.

In his March 12 message to stakeholders, Chipper Cash co-founder and CEO Ham Serunjogi claimed the fintech unicorn had insignificant vulnerability to some SVB and Signature Bank. At the clip of SVB’s collapse, Chipper Cash had astir $1 cardinal held astatine the bank.

Serunjogi besides sought to downplay SVB’s perceived power connected the fintech by pointing to the collapsed bank’s shareholding successful Chipper Cash.

“SVB wasn’t the lone capitalist successful that circular – we had respective different caller and existing investors enactment successful the $100m circular – and SVB owns a precise tiny portion of Chipper ~2%. Chipper is precise fortunate to person a precise wide and supportive capitalist basal that has supported america from our earliest days and continues to bash truthful today,” the CEO said.

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