Africa’s E-Commerce Sector to Reach New Heights: Chpter Secures $1.2 Million Pre-Seed Funding to Expand Across the Continent
Business Startups

Africa’s E-Commerce Sector to Reach New Heights: Chpter Secures $1.2 Million Pre-Seed Funding to Expand Across the Continent

Chpter, a Kenyan AI-powered social commerce platform, has secured $1.2 million in a pre-seed funding round to accelerate its growth across Africa. Founded in 2022 by Tesh Mbaabu, Mesongo Sibuti, Kuria Kevin, and Mark Kiarie—co-founders of the YC-backed startup Marketforce—Chpter aims to revolutionise how businesses engage with customers on social media platforms like WhatsApp and Instagram.

The funding round was led by Pani, an Africa-focused investment firm co-founded by former Cellulant CEO Ken Njoroge. Other notable participants include Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and prominent angel investors such as Benjamin Fernandes, CEO of Nala, and the co-founders of Workpay, Paul Kimani, and Jackson Kibigo.

Chpter’s platform helps businesses automate conversations, manage orders, and process payments, thereby transforming social media from mere marketing channels into full-fledged sales platforms. The company charges a monthly subscription fee and earns a transaction fee on payments processed through its system. Some of its clients include well-known brands like Britam, Kicks Kenya, and Phoneplace.

The startup is set to use this new funding to enhance its technology stack and expand into key markets like Nigeria, Egypt, Ghana, and Morocco within the coming months. This expansion is part of Chpter’s broader strategy to capitalize on Africa’s booming e-commerce sector, which is projected to reach $75 billion by 2025.

Tesh Mbaabu, Chpter’s co-founder and CEO, emphasized the importance of building an end-to-end solution that integrates seamlessly with popular e-commerce systems like Shopify and WooCommerce. “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,” said Mbaabu.

Chpter’s acceptance into two major accelerator programs—Norrsken Accelerator in 2023 and Safaricom’s Spark Accelerator in May 2024—has further positioned it as a key player in Africa’s evolving e-commerce landscape. The support from these programs has been instrumental in Chpter’s rapid growth and its ability to attract significant investment.

The rise of social commerce across Africa is a testament to the continent’s digital transformation. As more Africans embrace online shopping, platforms like Chpter are enabling businesses to tap into this growing market, driving both economic growth and innovation. With its recent funding and strategic expansion plans, Chpter is set to play a crucial role in shaping the future of e-commerce in Africa.

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