Reports on the current state of Chipper Cash show that its valuation is down to $1.25 billion from the initial $2 billion. While the reduction in the value of the African unicorn occurred before FTX filed for bankruptcy, Chipper Cash laying off 12.5% of its employees a few days ago attests to the drop.
Further details on Chipper Cash show that after raising $100 million in H1 of 2021 courtesy of SVB Capital, FTX led a round in H2 of the same year to raise $250 million, which brought the value of the payment platform to $2 billion.
Again, FTX came to the rescue of the African Fintech firm, according to findings, giving the team $35 million in SAFE at a $1.25 billion valuation. The year 2022 has been a bearish season for most Fintech firms and the crypto space, which has seen a lot of companies shut down, lay off staff, or slash their valuation.
African startups affected by FTX
Chipper Cash was launched in 2018 as a peer-to-peer payment platform where Africans can carry out cross-border financial activities, including crypto-related transactions.
Like other Fintechs that start in Africa with plans to expand globally, Chipper Cash is used in Nigeria, Ghana, Tanzania, South Africa, Kenya, Uganda, and Rwanda, with plans to reach the UK and US. However, those plans might not be implemented soon because of the current downward market trend.
This trend has affected several African startups, especially those linked with the now-defunct FTX exchange. Firms like OVEX, a South African digital asset exchange; Bitnob, a Nigerian crypto exchange startup; Nestcoin, a Nigerian web3 platform, and Jambo, a Congolese Web3 company, to name a few.