How ‘Doing Hard Things’ Put Chipper Cash Back On Track — CEO
Chipper Cash, a prominent African fintech startup, is charting a path forward after weathering a storm of challenges that led to strategic shifts to realign its trajectory for sustained growth.
Initially hailed for its rapid rise to unicorn status while backed by marquee global investors, as well as its expansion and diverse financial services spanning several African nations, Chipper Cash encountered unforeseen hurdles. Economic downturn, market volatility, and disruptions in the crypto landscape prompted the company to reevaluate its strategies. The now-defunct crypto exchange FTX led Chipper’s USD 150 M Series C, although the fintech maintains it had minimal exposure.
CEO Ham Serunjogi earlier revealed the company’s response to these challenges. Internal valuations were adjusted, and Chipper Cash underwent a restructuring phase that included debt refinancing and a reduction in workforce that cut nearly 200 jobs. This recalibration aimed to afford the company stability amid uncertain market conditions.
This phase marked a pivotal cultural shift within the organization, Serunjogi writes in an end-of-year message sent to all Chipper employees globally and subsequently shared publicly Tuesday. Chipper Cash moved towards a more results-oriented approach, emphasizing customer-centric solutions and a renewed focus on its core strengths, the founder shares.
Despite setbacks in acquisition talks and market fluctuations, Chipper Cash achieved notable milestones in the past year. The launch of innovative products like the Chipper ID, designed to address digital identity verification at scale on the continent, showcases the company’s commitment to providing forward-thinking solutions tailored to the African market’s needs. The startup also expanded into Rwanda and completed the acquisition of Zoona/Tilt in Zambia and South Africa while deepening its virtual card offering.
“Chipper is now the largest issuer of virtual cards in Africa, and in 2023 we hit the one million cards issued milestone, – the first fintech in Africa to reach this scale,” Serunjogi says.
“Chipper is a business of scale, and this shows up in every aspect of our business and operations. For context, we have over 10 million unique verified documents such as passports, national IDs, voter registrations etc, over 7 million unique image and video selfies, and hundreds of millions of phone numbers and email addresses. We process over 125K transactions daily, and over 300 million API calls every month,” he writes.
As 2024 unfolds, Chipper Cash stands reinvigorated, focusing on profitability and sustainability. The company’s pivot back to its core strengths and its refocused approach to serving its customer base signals a promising trajectory for the future. And Serunjogi remains optimistic about the company’s plans, highlighting this phase as a testament to Chipper Cash’s resilience and adaptability in the face of adversity.
