Chpter, a Kenyan e-commerce startup, has secured $1.2M in pre-seed funding. The Marketforce co-founders’ new venture is levelling its tech stack and expanding into Egypt and Nigeria, preparing for a digital commerce boom.
Chpter, launched in 2022 by some visionary founders (Tesh Mbaabu, Mesongo Sibuti, Kuria Kelvin, and Mark Kiarie), is transforming the social media landscape for businesses.
By integrating innovative chat, order, and payment functionalities, Chpter seamlessly transforms social media channels into transactional sales platforms. This enables businesses to leverage social media’s vast user base, increase conversions, and reduce friction in the customer journey.
This integration allows for personalised customer interactions, streamlined ordering processes, and secure payment transactions, ultimately creating a holistic and immersive shopping experience that drives revenue growth and customer satisfaction.
Chpter’s business model, funding, and expansion plans
The company’s revenue model is anchored on a monthly subscription fee, supplemented by transaction fees for payments processed on its platform.
Boosting an impressive client roster that includes Britam, Kicks Kenya, and Phoneplace, Chpter is currently operational in Kenya and South Africa and poised for exceptional growth.
Tesh Mbaabu, Chpter’s co-founder and CEO, told a reporter that they are investing in their tech stack to offer an end-to-end product, connecting the APIs from social media platforms such as WhatsApp and Instagram with popular e-commerce and customer relationship management systems like Shopify and Woocommerce.
Pani, an investment firm zeroing in on Africa, spearheaded by Cellulant’s ex-CEO Ken Njoroge, took the lead in the funding round. A syndicate of investors joined in, comprising Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and angel investors, like Nala’s Benjamin Fernandes and Workpay’s Paul Kimani and Jackson Kibigo.
Chpter secures funding, accelerator support in conversational commerce
The successful fundraising is a resounding endorsement from investors in the fledgling startup.
Chpter’s co-founders, who previously helmed Marketforce, a YC-backed Kenyan e-commerce giant once worth over $100 million, have garnered support from familiar investors, with some having previously backed Marketforce.
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However, Mbaabu remained tight-lipped about the specifics. Notably, Chpter operates as a distinct entity, separate from Marketforce.
Chpter operates independently, despite MarketForce being a shareholder, Mbaabu clarified.
Chpter’s acceptance into Norrsken Accelerator (2023) and Safaricom Spark Accelerator (May 2024) positions it as a conversational commerce frontrunner.
The Norrsken Accelerator investment in Chpter remains undisclosed, while in May 2024, the Safaricom Spark Accelerator invested a significant amount, ranging from $150,000 to $500,000, in the startup, according to a person familiar with the matter.
Notably, the telco did not participate in the pre-seed round, making this investment a standalone commitment to Chpter’s growth and development in conversational commerce.