A New Era for E-Commerce
Chpter, a burgeoning Kenyan e-commerce startup, is making waves in the industry by helping businesses transform social media from a mere marketing tool into a full-fledged sales platform. Founded in 2022 by Tesh Mbaabu, Chpter has already secured $1.2 million in a pre-seed funding round. The company plans to use this new capital to enhance its technology stack and solidify its position in the market.
From Concept to Creation
Chpter was conceived by Tesh Mbaabu, one of the co-founders behind the successful YC-backed Marketforce, an e-commerce platform that once boasted a valuation exceeding $100 million. Recognizing the untapped potential of social media in driving direct sales, Mbaabu set out to create a platform that bridges the gap between social engagement and e-commerce transactions. Chpter provides businesses with chat, order, and payment tools, transforming social media platforms like WhatsApp and Instagram into seamless sales channels.
Business Model: A Dual Revenue Stream
Chpter’s business model is straightforward yet effective. The company charges a monthly subscription fee to its clients and also earns a transaction fee for every payment processed on its platform. This dual revenue stream not only ensures a steady income but also aligns with the growing trend of subscription-based services in the tech industry. Chpter’s clientele includes notable names such as insurer Britam, shoe retailer Kicks Kenya, and the popular e-commerce platform Phoneplace.
Strategic Investment: Strengthening the Tech Stack
The recent $1.2 million pre-seed round was led by Pani, an Africa-focused investment firm co-founded by Ken Njoroge, the former CEO of Cellulant. The round saw participation from prominent investors, including Plesion Capital, Techstars, Norrsken, Renew Capital, and ViKtoria Ventures. Angel investors such as Nala founder and CEO Benjamin Fernandes and Workpay co-founders Paul Kimani and Jackson Kibigo also joined the round.
Chpter plans to channel this funding into enhancing its technology stack. The goal is to offer an end-to-end product that integrates APIs from social media platforms like WhatsApp and Instagram with leading e-commerce and customer relationship management (CRM) systems, including Shopify and Woocommerce. This strategic investment in technology is set to position Chpter as a key player in the evolving landscape of conversational commerce.
Investor Confidence: A Testament to Chpter’s Potential
The successful fundraising is a significant vote of confidence from investors in Chpter’s vision and potential. Interestingly, some of the investors who participated in this round had previously invested in Marketforce, further underscoring their belief in Mbaabu’s entrepreneurial acumen. Although Chpter operates independently of Marketforce, it benefits from the experience and insights gained from the co-founders' previous ventures.
Boosting Growth and Visibility
Chpter’s acceptance into prestigious accelerator programs has been instrumental in its early success. In 2023, the startup was selected for the Norrsken Accelerator, a program known for nurturing high-potential startups in Africa. Although the investment amount from Norrsken remains undisclosed, the exposure and mentorship provided by the accelerator have undoubtedly contributed to Chpter’s growth.
Additionally, Chpter was admitted into the Safaricom Spark Accelerator in May 2024, a program designed to support innovative startups in Kenya. Sources familiar with the matter revealed that Safaricom Spark invested between $150,000 and $500,000 in Chpter, further boosting the company’s resources and visibility.
The Road Ahead for Chpter
With its innovative approach to integrating social media and e-commerce, Chpter is poised for significant growth. The recent funding, coupled with strategic investments in technology and the support from accelerator programs, positions the startup as a formidable player in the conversational commerce space. As Chpter continues to refine its offerings and expand its market presence, it is set to play a crucial role in shaping the future of e-commerce in Africa and beyond.
