Africa-focused fintech unicorn Chipper Cash has laid off 15 employees in its fourth round of job cuts within the last year, primarily affecting its US-based team. This latest reduction follows a series of layoffs, including 180 employees in late 2022 and nearly a dozen earlier this year, as the company adapts to a challenging macroeconomic climate. In response, Chipper Cash is also implementing salary cuts for remaining employees in the US and UK, although the company did not comment on these reductions.
Founded in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled, Chipper Cash quickly grew into a popular cross-border payment platform, connecting users across Africa and key international markets like the UK and US. The company gained popularity as a zero-fee platform, generating revenue from currency exchange margins in international transactions. Alongside remittance services, Chipper Cash enables users to pay bills, trade cryptocurrency, buy airtime, and even invest in fractional stocks in companies listed on American stock exchanges.
Chipper Cash, valued at $2 billion in 2021, initially adopted a “growth-at-all-costs” strategy, raising over $300 million from high-profile investors, including Ribbit Capital, Bezos Expeditions, and FTX. During the pandemic, Africa’s digital payment acceleration drove Chipper Cash’s revenue to $75 million in 2021, with insiders estimating it surpassed $100 million by 2022. However, with rising interest rates in the US and mounting economic pressures, the startup faced reduced venture capital inflows, prompting significant layoffs and a focus on cost conservation.
In a statement, Chipper Cash confirmed its business performance remains strong, with CEO Ham Serunjogi indicating that profitability is expected within months. To streamline operations, the company is narrowing its focus to core markets and has abandoned plans for expansion into Europe and the Middle East. This strategic shift follows pressure from competitors like Flutterwave, Eversend, and LemFi, which continue to target Chipper Cash’s domestic and international remittance markets.
Further financial challenges arose after the collapses of two major backers, FTX and Silicon Valley Bank, which contributed to a markdown of Chipper Cash’s valuation to $1.25 billion. Reports suggest the startup raised $25 million in convertible debt, which would convert at a $450 million valuation if triggered by acquisition or new fundraising. With current measures focused on extending cash runway, Chipper Cash’s operational adjustments reflect a renewed commitment to sustainability in a difficult economic landscape.
