The app, which allows users to send and receive payments across Africa as well as buy and send cryptocurrencies, including Bitcoin, Ethereum, and USDC, was valued at $2 billion in late 2021 after a $100 million Series B funding round led by Silicon Valley Bank (SVB). However, the defunct exchange FTX, which also backed Chipper, marked down the startup’s valuation to $1.25 billion just 13 months later, and the company laid off 12.5% of its workforce.
Chipper CEO Ham Serunjogi released a statement on Sunday downplaying the impact of SVB’s recent failure, saying the bank’s collapse had an “insignificant” effect on the payments company.
“We had a very limited amount of money (only about $1M) held in our SVB account at the time the bank was taken over by the California regulator,” Serunjogi explained, adding that SVB’s funds were delivered immediately. “What is happening now doesn’t change that,” he wrote. “Additionally, SVB wasn’t the only investor in that round.”
Despite the reported sale, Chipper Cash denied that it had ever sought to be acquired. Serunjogi also emphasised that SVB’s failure did not interrupt customer operations and that the firm has multiple other banking partners in the United States.
However, he acknowledged the pivotal role that SVB played in supporting the company, particularly in its early days. “Five years ago, when I was trying to open Chipper’s first bank account, SVB was the only bank that would accept us,” he wrote. “I know there are countless other startups all doing very important work who would say the same thing.”
Chipper Cash’s future remains uncertain as the company navigates the aftermath of SVB’s collapse and ongoing market volatility. However, the startup has been a major player in the African fintech space, with its user base growing rapidly over the past few years. The company’s next steps could have far-reaching implications for the region’s digital payments landscape.
Source:
www.pulse.com.gh
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