Chipper Cash, one of Africa’s more well-known fintech startups and unicorns, is thinking about selling the business or looking for new investors, according to a report from Bloomberg that was just released. Although Chipper Cash assured the outlet that it never aspired to be bought, Bloomberg said that the negotiations were confidential.
“It’s been quite typical practice for us to receive numerous M&A approaches from different parties, which we assess to various degrees,” Chipper Cash said in a statement to Bloomberg. Having said that, they said they have never sought acquisition.
Why Chipper Cash Is Contemplating Of Shutting
The business has lately made headlines due to information that it has money in Silicon Valley Bank. Chipper Cash claimed in a statement that its exposure was minimal—$1 million—and that it would not have any impact on its operations.
Nevertheless, Big Tech This Week publisher Fatu Ogwuche refuted Chipper’s account of what happened and stated that the business had $3 million. Regardless of the precise sum, the decision by US regulators to compensate every depositor suggests that the argument may be purely theoretical.
What is evident is that this year may prove to be more difficult than normal for African unicorns trying to raise money. TechCabal reported earlier that Flutterwave’s IPO plans may suffer a delay this year, with unconfirmed reports that the company may have to raise money at a lower valuation than $3 billion.
It was also reported Silicon Valley Bank (SVB) abruptly closed last Friday as a result of “inadequate liquidity and insolvency”. This was revealed by the local financial regulator California Department of Financial Protection and Innovation.
Conclusion
If Chipper Cash gets money this year, its worth might drop because the possibility of going public is remote. Before this, it was valued at $2 billion during a $250 million fundraising effort.
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