Chpter, Kenyan e-commerce Startup Raises $1.2 Million in Pre-seed Round

Chpter, a Kenyan e-commerce startup founded by the co-founders of the successful YC-backed Marketforce, has successfully raised $1.2 million in a pre-seed funding round.

This significant investment will enable Chpter to enhance its technology stack and expand its operations into Egypt and Nigeria, marking a pivotal moment for the company as it seeks to redefine the e-commerce landscape in Africa.

Background of Chpter

Founded in 2022 by Tesh Mbaabu, Mesongo Sibuti, Kuria Kevin, and Mark Kiarie, Chpter aims to transform social media platforms into effective sales channels.

By providing businesses with tools for chat, order management, and payment processing, Chpter allows companies to leverage their social media presence for direct sales.

The startup operates on a subscription model, charging clients a monthly fee while also earning transaction fees from payments processed through its platform.

Chpter, Kenyan e-commerce Startup Raises $1.2 Million in Pre-seed Round

Notable clients include Britam, a leading insurance company, Kicks Kenya, a popular shoe retailer, and Phoneplace, an e-commerce platform.

Tesh Mbaabu, Chpter’s co-founder and CEO, emphasized the company’s commitment to building a robust technology infrastructure.

“We are investing in our 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,” he stated in an interview.

Funding Details and Investor Confidence

The pre-seed funding round was led by Pani, an Africa-focused investment firm co-founded by Ken Njoroge, the former CEO of Cellulant.

Other notable investors included Plesion Capital, Techstars, Norrsken, Renew Capital, and ViKtoria Ventures, along with angel investors such as Benjamin Fernandes, the founder and CEO of Nala, and Workpay co-founders Paul Kimani and Jackson Kibigo.

This fundraising effort is seen as a strong vote of confidence from investors in Chpter’s potential.

The startup operates independently from Marketforce, although some of its investors have previously backed Marketforce, which was once valued at over $100 million.

Mbaabu clarified, “Chpter was and is not under the MarketForce umbrella. It is going to continue operating independently. However, MF is a shareholder in it.”

Strategic Expansion Plans

With the new funding, Chpter is poised to expand its footprint beyond Kenya and South Africa, targeting key markets in Egypt and Nigeria.

These countries represent significant opportunities for growth in the e-commerce sector, driven by increasing internet penetration and a growing middle class.

Chpter’s acceptance into the Norrsken Accelerator in 2023 and the Safaricom Spark Accelerator in May 2024 has further positioned it as a key player in the burgeoning field of conversational commerce.

The mentorship and training provided by these accelerators are expected to enhance Chpter’s operational capabilities and market reach.

The investment from Safaricom’s Spark Accelerator, which is estimated to be between $150,000 and $500,000, will provide additional resources for Chpter to scale its operations effectively.

This partnership is particularly valuable as Safaricom is one of the largest telecommunications providers in Kenya, offering insights and access to a vast customer base.

The Future of E-commerce in Africa

Chpter’s innovative approach to integrating social media with e-commerce reflects a broader trend in the African market, where traditional retail models are increasingly being supplemented by digital solutions.

As more businesses recognize the potential of social media as a sales channel, platforms like Chpter are well-positioned to capitalize on this shift.

The successful funding round not only underscores the confidence investors have in Chpter but also highlights the growing interest in African startups that are leveraging technology to solve local challenges.

As the company embarks on its journey to redefine e-commerce in Africa, the eyes of the tech community will undoubtedly be on Chpter as it seeks to make its mark in the competitive landscape.

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