According to TechCrunch, crypto exchange FTX led a $150 million Series C extension fundraise for African remittance company Chipper Cash.
This new round of investment comes six months after the fintech startup raised $100 million in a Series C funding round led by SVB Capital. Chipper Cash provides fee-free peer-to-peer cash transfers in Nigeria, Ghana, Tanzania, and South Africa, among other countries in Sub-Saharan Africa. In order to facilitate remittance flows from African expatriates living abroad, the firm has begun to expand its services to Europe.
Chipper Cash will soon be available on the FTX trading platform for FTX customers in Africa as part of the cooperation. This collaboration, according to the FTX CEO, is a “compelling use case” for both companies because it expands the fintech firm’s network API integration.
Given the company’s recent pilot test of digital currency peer-to-peer transfers in South Africa and Uganda, the alliance might help it transition to cryptocurrency payments.
Crypto popularity is increasing
The announcement also represents FTX’s first investment in the African market, as crypto use continues to rise on the continent. Africa’s crypto market grew by over $105 billion between June 2020 and July 2021, according to a Chainalysis report released in September, with cryptocurrencies appearing to offer a viable channel for improving remittance flows.
Crypto adoption has risen in lockstep with the continent’s general expansion of fintech services, which typically aim to improve access to financial services for the unbanked.