Chipper Cash, an African fintech startup has been able to convince Joe Montana, an American Football legend and his company, Liquid 2 Ventures and 500 Startups to invest in it. The startup, a no-fee, cross-border payments operator, has raised a $2.4 million seed round.
Chipper Cash was founded by Ghanaian Maijid Moujaled and his Ugandan counterpart, Ham Serunjogi. The startup went live just October last year becoming part of the emergent fintech sector in Africa. Chipper offers no-fee, P2P, cross-border mobile-money payments in Africa, something like Africa’s version of PayPal.
Currently, Chipper is headquartered in San Francisco, US, but has offices in Ghana and Nairobi, Kenya. Co-founder Serunjogi says the startup has over 70,000 active users and has processed 250,000 transactions for these users.
Talking about the American footballer, co-founder Serunjogi said, “He was quite excited about what we’re doing and his belief that the next wave of [tech] growth will come from…Africa”.
Sheel Mohnot led 500 Startups to invest in Chipper Cash. He compared Chipper Cash’s structure to that of globally popular payments company, PayPal.
“When PayPal started it was just a consumer to consumer free app. It still is free for consumer to consumer, they but they monetized the merchant side. That model is tried and tested. It just doesn’t exist in Africa, so Chipper has the opportunity to do that.”
Plans moving forward
With the seed funds, Chipper Cash is going to launch Chipper Checkout. This is a merchant focused, C2B, mobile payments product. This would be the premium side of the fintech organisation. The company plans to use the income from the paid Chipper Checkout to support the no-fee Chipper Cash service.
Chipper Cash plans to expand its current operations in Ghana, Uganda, Kenya, Tanzania, and Rwanda.
The startup is putting structures in place to tap into the global remittance market in West Africa. This market according to the World Bank is worth about $38 billion.
Ham Serunjogi and Majiid Moujaled met at Grinell College, Iowa, when they were doing their undergrad degrees.