Chipper Cash, the Africa-focused fintech company backed by Jeff Bezos’s Bezos Expeditions, has announced layoffs affecting 20 employees in the UK and US just a week after suspending its services in the US. The decision, detailed in a blog post, also impacted at least two senior executives, sources revealed.
The move aligns with Chipper Cash’s strategic pivot toward its core African markets, where it continues to dominate with popular consumer products. CEO Ham Serunjogi stated that the US had never been a central focus for the company, describing its US product offerings as an extension of its African services. While Chipper suspended operations in the US, Serunjogi expressed optimism about resuming those services in the future.
This isn’t the first round of cost-cutting measures for Chipper Cash. In December 2023, the company reduced salaries by 25% for its UK and US employees and laid off 15 staff members, even as it insisted that its business remained strong. Over the past year, the company has gone through four rounds of layoffs, affecting high-profile executives such as Alicia Levine, former Chief Operating Officer, and Leon Kiptum, former Country Director for Kenya.
Chipper Cash has faced mounting financial pressures over the last two years. Once valued at over $2 billion, the company raised $300 million between 2019 and 2021 from notable investors including Ribbit Group, Deciens Capital, FTX, and Silver Valley Bank. However, as global economic conditions worsened and venture capital funding dried up, Chipper struggled with rising operational costs. Reports indicate its monthly burn rate escalated to $7 million by mid-2021, following its Series C funding round.
Despite these setbacks, Chipper Cash remains focused on strengthening its presence in Africa, where its core markets continue to drive its operations. The company’s recent measures reflect broader challenges in the global fintech sector as economic conditions remain uncertain.
