Chipper Cash, the African fintech unicorn, has undergone another round of workforce reductions, resulting in 15 employees across various departments losing their positions. This marks the fourth round of layoffs within a year, primarily impacting the company’s US team.
Confirmation of the recent job cuts came from Chipper Cash to TechCabal. Despite the layoffs, the company maintained an optimistic outlook on its performance, asserting, “Our business is doing very well and will be profitable in a few months.”
Chipper Cash emphasized its commitment to operational efficiency through minor restructuring, clarifying that no roles in Africa were affected by the recent layoffs.
In addition to the workforce reductions, sources connected to the company reported that the fintech unicorn has also reduced the salaries of its remaining US and UK employees. However, the company did not provide further details or context for these salary adjustments.
Read Also: Chipper Cash CEO and 2 Nigerians Join Biden’s Council
Key Information about Chipper Cash Layoffs
Chipper Cash, founded in 2018 by Ham Serunjogi and Maijid Moujaled, aimed to digitize remittance payments into Africa. Operating as a cross-border payments service, the company facilitates transactions between eight countries, including Nigeria, South Africa, the UK, and the US, positioning itself as a zero-fee payment platform for peer-to-peer transactions.
Chipper Cash faced challenges despite its exponential growth, with layoffs in late 2022 affecting around 40% of its workforce. The company also experienced the departure of several senior leadership members, including its Chief Operating Officer, Chief Information Officer, Chief Revenue Officer, Global Head of Marketing, and Chief Compliance Officer. Chipper Cash attributed these changes to a shift in focus towards core markets and products amid a challenging macroeconomic climate.
Financially, the fintech unicorn faced pressure following the collapse of two prominent investors, FTX and Silicon Valley Bank, leading to a marked reduction in the company’s valuation and reports of a devaluation of employee stock options by up to 70%.
In response to the difficult fundraising environment, the fintech unicorn reportedly secured $25 million in convertible debt from an undisclosed investor, aiming to conserve cash and extend its financial runway. Since its launch, Chipper Cash has raised over $300 million in venture funding across multiple rounds.
Conclusion
Chipper Cash’s CEO, Ham Serunjogi, recently joined the Advisory Council on African Diaspora Engagement, established by United States President Joe Biden.
The council aims to promote dialogue between U.S. officials and the African Diaspora, with Serunjogi being one of the inaugural 12 members.
Vice President Kamala Harris announced This commitment during the 2022 U.S.-Africa Leaders Summit on behalf of the Biden-Harris Administration.
