Chipper Cash, one of Africa’s leading fintech players, is reportedly considering the possibility of selling its business or bringing in new investors, backed by FTX and Silicon Valley Bank. According to the fintech startup’s CEO, Chipper Cash had insignificant exposure to both SVB and Signature Bank.
Chipper Cash “never wanted to be acquired”
African fintech giant Chipper Cash, backed by FTX and Silicon Valley Bank (SVB), is considering options such as selling the business or bringing in new investors, according to a Bloomberg report citing unnamed sources. The report said the fintech, which began exploring its options before SVB’s sudden collapse, has not yet finalized what action it will take.
As Bitcoin.com News previously reported in late 2021, Chipper Cash successfully raised $150 million in an extension of the Series C led by now collapsed crypto exchange FTX. SVB, which led the initial Series C, also participated in the round, as did Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, and Tribe Capital.
However, after a turbulent 2022 that culminated in the collapse of FTX, Chipper Cash’s valuation fell from $2 billion in the fourth quarter (Q4) of 2022 to $1.25 billion in December 2022. Faced with rising costs, Chipper Cash also reduced its workforce.
It has no material exposure to SVB
Meanwhile, the suspension of SVB’s operations by U.S. authorities reportedly led to speculation that Chipper Cash, an SVB customer, would be hit hard by the bank’s disappearance. However, in a statement sent to Bloomberg, Chipper Cash insisted that the owners have never considered selling the business.
“It was quite common to receive various m&proposals from various counterparties, which we evaluate to varying degrees. That said, we never sought acquisitions,” Fintech reportedly said.
In a March 12 message to stakeholders, Chipper Cash co-founder and CEO Ham Serunjogiclaimed that the FinTech unicorn had insignificant exposure to both SVB and Signature Bank . at the time of SVB’s failure, Chipper Cash had approximately $1 million in the bank.
Serunjogi also tried to downplay SVB’s influence on fintech by pointing out that the collapsed bank owned shares in Chipper Cash.
“SVB was not the only investor in the $100 million round, several other new and existing investors participated, and SVB owns a small portion (2%) of Chipper. Chipper is very fortunate to have had a very broad and supportive investor base from its early days to today,” said the CEO.
Subscribe to our email here to receive weekly news from Africa.
Image Credit:: Shutterstock, Pixabay, Wiki Commons
