African App Chipper Cash Raises $30 Million and Launches Crypto Trading

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Chipper Cash, an African startup company that was backed up by Jeff Bezos recently, managed to raise $30 million. Right after raising that kind of money, the app added crypto trading to its list of options, allowing its users to buy and sell Bitcoin.

The app was started as an African cross-borders payments startup. It received $30 million in a Series B funding round led by venture capital Ribbit Capital. Amazon CEO’s personal VC fund Bezos Expeditions also participated, fueling Chipper Cash’s growth.

With cryptocurrencies increasingly more popular in Africa, an app such as Chipper Cash can change the financial landscape. With over 3 million users (and counting), it could bring Bitcoin and cryptos closer to the African youth and get them interested in the matter.

Massive Growth in the Space of a Couple of Years

Chipper Cash was found in 2018 in San Francisco by two African entrepreneurs – Maijid Moujaled from Ghana and Sam Herunjogi from Uganda. In the beginning, the service was available in only seven African countries, including Ghana, Uganda, and Nigeria. All three countries have hit record unemployment numbers, especially among the youth. Since many young Africans don’t have a bank account, Chipper Cash gave them a way to enjoy simple and free transfers with low cross-border rates.

In just two years, Chipper Cash has 3 million users and over 80,000 daily transactions. In June of 2020, the monthly payments value was over $100 million. The meteoric rise of the company got the attention of Amazon CEO Jeff Bezos, who supported the idea through his personal VC fund.

The $30 million raised in funding will certainly be put to good use. CEO Herunjogi plans to expand the app’s features to include other services. Moving into new markets is also a priority. Shortly after raising the money, Chipper Cash included crypto trading to its app. Africans can now buy and sell cryptocurrencies such as Bitcoin or invest in major shares.

Nigerians, for example, will now be able to invest money in Apple, Amazon, or Tesla shares via the app. Users have demanded such improvements, and Chipper Cash’s team obliged.

Buy and Sell Bitcoin with Ease

The website recently added the option to buy and sell Bitcoin in beta. The option is available to Nigerian customers only, but should roll out to other countries soon. Chipper Cash’s users can invest in US stocks thanks to the partnership with US financial services company Drivewealth.

Chipper Cash’s efforts will bring cryptocurrencies closer to the African youth. High unemployment rates have seen Nigerian young people turn to Bitcoin casinos and online betting, putting many of them in even more debt.

Thanks to apps such as Chipper Cash, young Africans can learn more about cryptocurrencies in general and stock trading. That’s one of the biggest upsides of the brilliant app.

According to Herunjogi, Bezos’ backing means a lot for Africa as a whole. The winner of such backing is Africa’s tech ecosystem, as it will surely attract investments from higher-caliber firms.

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November 25, 2020: • No Comments

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