TBD, a subsidiary of Block, owned by Jack Dorsey, has formed a partnership with Chipper Cash, an Africa-focused fintech company. This partnership aims to expedite consumer remittances and make them more affordable. According to a statement, Chipper Cash plans to use the decentralized exchange protocol of TBD. This will enable trusted transactions that comply with […]
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Nigerian Fintech Startup Chipper Cash Lays Off Employees in US, UK
The Nigerian fintech startup, Chipper Cash, recently abolished the roles of 20 workers based in the U.S. and U.K. The CEO Ham Serunjogi said this decision aligns with its goal of maintaining high operational efficiency and moves the startup closer to profitability. Layoffs Set Chipper Cash on Course for Positive Cash Flow in the First […]
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Africa-Focused Fintech Chipper Cash Weighs Possible Sale of Business
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.
As previously reported by Bitcoin.com News in late 2021, Chipper Cash successfully raised 0 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 billion in the fourth quarter (Q4) of 2022 to .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.
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 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 0m 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.
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Report: Chipper Cash Lays Off More Workers — Crypto Department Still Operational, Says CEO
The Nigerian fintech, Chipper Cash, recently said it has let go of more employees and that this step has been taken to help the firm contain its operating costs. Although no figure of the number of axed workers was given, one report estimated this to be around 100, or 12.5% of Chipper Cash’s entire workforce. Chipper Cash CEO Ham Serunjogi has dismissed reports that the fintech has shut down its crypto department.
The Deteriorating Macroeconomic Climate
The Nigerian fintech, Chipper Cash, recently confirmed it had laid off a second batch of employees as part of measures aimed at containing the company’s operating costs. Although no figure has been provided, one report estimated the cuts to be around 100 people, or 12.5% of Chipper Cash’s entire workforce.
According to a Techcrunch report, the fintech’s firm latest retrenchment exercise has impacted all areas, from human resources to the research and legal departments. Commenting on the fintech’s axing of talented employees less than three months after it laid off the first group, Chipper Cash CEO Ham Serunjogi detailed the circumstances that prompted the company to let go of some of its talent.
“The last two years were a period of rapid growth and scaling for us as a business and, to reflect this, our global headcount grew by around 250 people. However, given the macroeconomic climate, we are narrowing our current focus to core markets and products – concentrating our efforts where we know we can thrive,” Serunjogi reportedly said.
The CEO added that with the unfavorable circumstances that have now prevailed for more than one year, Chipper Cash can only operate effectively with a smaller team.
Meanwhile, the same report quotes Serunjogi denying reports that Chipper Cash has shut down its crypto department. According to the CEO, the fintech startup’s crypto trading platform is one of the largest in Africa and one of its “fastest growing products,” hence Chipper Cash will “continue to invest in the product.”
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