{"id":18871,"date":"2023-03-18T11:04:49","date_gmt":"2023-03-18T11:04:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/africa-focused-fintech-chipper-cash-weighs-possible-sale-of-business-fintech-bitcoin-news\/"},"modified":"2023-03-18T11:04:49","modified_gmt":"2023-03-18T11:04:49","slug":"africa-focused-fintech-chipper-cash-weighs-possible-sale-of-business-fintech-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/africa-focused-fintech-chipper-cash-weighs-possible-sale-of-business-fintech-bitcoin-news\/","title":{"rendered":"Africa-Focused Fintech Chipper Cash Weighs Possible Sale of Business \u2013 Fintech Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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One of Africa\u2019s 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. <\/strong><\/p>\n

Chipper Cash \u2018Never Sought to Be Acquired\u2019<\/h2>\n

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\u2019s abrupt collapse, is yet to make a final decision on which course of action it will take.<\/p>\n

As previously reported<\/a> by Bitcoin.com News in late 2021, Chipper Cash successfully raised $150 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.<\/p>\n

However, following a turbulent 2022 which climaxed with FTX\u2019s collapse, Chipper Cash saw its valuation<\/a> drop from $2 billion in the fourth quarter (Q4) of 2022 to $1.25 billion by Dec. 2022. Faced with rising costs, Chipper Cash also trimmed<\/a> its workforce.<\/p>\n

Insignificant Exposure to SVB<\/h2>\n

Meanwhile, the shutdown of SVB by U.S. authorities is reported to have fueled speculation that Chipper Cash \u2014 a client of SVB \u2014 would be hard hit by the bank\u2019s demise. However, in a statement sent to Bloomberg, Chipper Cash insisted that the owners had never considered selling the business.<\/p>\n

\u201cIt\u2019s 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,\u201d the fintech reportedly said.<\/p>\n

In his March 12 message<\/a> 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\u2019s collapse, Chipper Cash had about $1 million held at the bank.<\/p>\n

Serunjogi also sought to downplay SVB\u2019s perceived influence on the fintech by pointing to the collapsed bank\u2019s shareholding in Chipper Cash.<\/p>\n

\u201cSVB wasn\u2019t the only investor in that round \u2013 we had several other new and existing investors participate in the $100m round \u2013 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,\u201d the CEO said.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/em><\/strong><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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