Chipper Cash Mulls Sale or New Investors After Receiving $250 million Financing from Silicon Valley Bank and FTX

03/15/2023 23:51 • Metaverse & Beyond • 105 views

It is reported that the source revealed that the African cross-border payment platform Chipper Cash, supported by the Silicon Valley Bank (SVB) and the Cryptocurrency Exchange FTX, is weighing various options, including exploring the sale or finding new investors. Chipper Cash received a US $250 million financing led by FTX and SVB in 2021. FTX invested a total of US $40 million in it, and SVB owned 2% of its equity. At that time, its valuation was about US $2 billion. (Bloomberg)

Chipper Cash is considering selling and has been invested by Silicon Valley Bank and FTX

Analysis based on this information:

African cross-border payment platform, Chipper Cash, is considering various options following the $250 million financing it received earlier this year from cryptocurrency exchange, FTX, and Silicon Valley Bank (SVB). The company is exploring the possibility of finding new investors or selling the firm. Chipper Cash has been expanding its reach in the African continent’s online payment industry, by enabling the transfer of funds across borders through its mobile app.

FTX invested $40 million in Chipper Cash, while SVB owns a 2% equity stake in the firm. This funding round saw the valuation of Chipper Cash rise to around $2 billion. The funding was set to boost the firm’s expansion strategy into other African countries, as well as improving its offerings, including the launch of additional products and services.

The move to consider a new investor or a sale of the firm comes as a surprise, given the recent funding received. It is speculated that there could be external factors driving this decision, such as the need to manage financial risk, competition from other fintech firms, and regulatory changes.

This announcement could mean several things for Chipper Cash. If the firm chooses to look for new investors, it suggests they may have ambitious plans for growth or an exciting product launch that will need additional funding. The other alternative, exploring a sale, could mean the company wants to take advantage of their recent excellent valuation and the investor demand in fintech, with the hope of a higher value for the investors.

In conclusion, Chipper Cash has received significant funding from FTX and SVB, which had previously set a solid foundation for the company’s expansion plans. But the recent reports of a possible sale or search for new investors suggest that the company wants to keep evaluating its options to strengthen its position. Whatever their decision finally is, Chipper Cash’s plans will undoubtedly have a significant impact on the African online payments industry.

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