Kenyan e-commerce startup Chpter just landed $1.2 million in pre-seed funding, a major win for the young company. With this capital boost, Chpter is set to supercharge its tech and expand into Egypt and Nigeria. Their innovative blend of social media and e-commerce has caught the eye of investors, positioning them as a key player in Africa’s fast-growing digital economy.
The Rise of Chpter
Founded in 2022 by Tesh Mbaabu, Mesongo Sibuti, Kuria Kevin, and Mark Kiarie, Chpter’s co-founders are no strangers to the tech scene—they also launched Marketforce, a Y Combinator-backed startup that made waves across Africa. Chpter aims to revolutionize how businesses use social media, transforming platforms like WhatsApp and Instagram from mere marketing tools into full-fledged sales channels. Their tech allows businesses to manage chats, orders, and payments, all seamlessly integrated into popular e-commerce platforms like Shopify and WooCommerce.
This breakthrough comes at a time when Africa’s e-commerce scene is booming, fueled by rising internet usage, mobile phone access, and a growing middle class. Social commerce, in particular, is exploding as businesses aim to connect with customers where they spend the most time: on social media. Chpter taps into this by linking social media APIs with e-commerce systems, helping businesses streamline their operations and improve customer engagement.
The Investors Behind the Big Win
Chpter’s $1.2 million pre-seed round was led by Pani, an Africa-focused investment firm co-founded by Ken Njoroge, former CEO of fintech giant Cellulant. This investment is a clear vote of confidence from seasoned tech leaders. Other notable investors include Plesion Capital, Techstars, Norrsken, Renew Capital, and ViKtoria Ventures. On top of that, angel investors like Nala founder and CEO Benjamin Fernandes, and Workpay co-founders Paul Kimani and Jackson Kibigo, also backed the round.
The success of this funding round highlights Chpter’s potential and the broader investor interest in Africa’s tech ecosystem. This pre-seed investment follows Chpter’s acceptance into two high-profile accelerators—Norrsken Accelerator in 2023 and Safaricom Spark Accelerator in 2024—which have been pivotal in their growth.
Expansion and a Bold Vision for the Future
With fresh funding, Chpter is set to elevate its tech game. The company aims to develop a seamless end-to-end product for businesses and consumers alike. Co-founder and CEO Tesh Mbaabu emphasized the importance of improving integration capabilities, linking social media APIs with e-commerce and CRM systems to make managing sales and customer interactions a breeze.
But Chpter isn’t stopping there. They have their sights set on Egypt and Nigeria—two of Africa’s largest and fastest-growing economies. Both countries have seen a surge in e-commerce activity, driven by young, tech-savvy populations and increasing internet penetration. By expanding into these markets, Chpter aims to tap into the demand for digital solutions that help businesses thrive in a competitive e-commerce landscape.
Building a Strong Client Base
Chpter’s ability to attract major clients has been a cornerstone of its early success. Big names like Britam, Kicks Kenya, and Phoneplace already use Chpter to streamline their sales processes and engage customers via social media.
Chpter’s business model, which combines a monthly subscription fee with transaction fees for payments processed on their platform, is proving attractive to a wide range of companies. By offering a scalable, easy-to-use solution, they’re helping businesses harness the power of social commerce to drive sales and strengthen customer relationships.
Accelerators’ Driving Success for Chpter
Chpter’s growth story is also tied to its participation in accelerator programs. The Norrsken Accelerator, based in Sweden, focuses on startups solving global challenges through innovation. Meanwhile, the Safaricom Spark Accelerator, backed by Kenya’s largest telecom company, invested between $150,000 and $500,000 in Chpter, further validating its potential.
These programs have given Chpter access to crucial resources, from mentorship to technical support, and have helped them refine their business model and expand their network.
Conversational Commerce: The Future of African E-commerce
Chpter’s focus on conversational commerce—using messaging platforms like WhatsApp, Facebook Messenger, and Instagram for customer engagement and transactions—is right on trend with global e-commerce shifts. In Africa, where mobile phone usage is high and social media is central to daily life, this approach provides businesses a unique opportunity to offer real-time, personalized shopping experiences.
By offering a solution that seamlessly integrates social media with e-commerce systems, Chpter is helping businesses tap into the future of e-commerce in Africa.
Looking Ahead: Opportunities and Challenges for Chpter
While Chpter’s early momentum is impressive, the road ahead won’t be without challenges. As the company scales and enters new markets, it will need to navigate regulatory hurdles, local consumer behaviors, and the competitive landscape.
However, with a leadership team that brings deep experience from their Marketforce days and a clear understanding of the African tech scene, Chpter is well-positioned to overcome these obstacles. The startup’s ability to attract top-tier investors and clients is a testament to the strength of its business model and the vast potential for future growth.
Chpter’s $1.2 million pre-seed funding is a major milestone in its mission to reshape e-commerce in Africa. With a sharp focus on conversational commerce, an expanding client base, and bold plans for growth in Egypt and Nigeria, Chpter is poised to play a significant role in Africa’s digital transformation.
As the startup continues to innovate and scale, it’s clear that Chpter is on track to become a game changer in Africa’s tech ecosystem, helping businesses harness the power of social media to build lasting customer relationships and drive growth.
