Chpter, a Kenyan e-commerce startup, has secured $1.2 million in a pre-seed funding round. The company will use the new capital to enhance its technology platform and expand its operations into Egypt and Nigeria.
Founded in 2022 by Tesh Mbaabu, Mesongo Sibuti, Kuria Kevin, and Mark Kiarie, Chpter offers businesses a platform to convert their social media channels into sales channels. By integrating chat, order, and payment functionalities, Chpter empowers businesses to efficiently manage customer interactions and transactions.
The startup’s innovative approach has attracted a diverse range of clients, including insurer Britam, shoe store Kicks Kenya, and e-commerce platform Phoneplace. Chpter currently operates in Kenya and South Africa.
“We are committed to investing in our technology infrastructure to deliver a comprehensive end-to-end solution,” said Tesh Mbaabu, Chpter’s co-founder and CEO. “By connecting APIs from social media platforms like WhatsApp and Instagram with popular e-commerce and customer relationship management systems, we aim to streamline the entire customer journey.”
The funding round was led by Pani, an Africa-focused investment firm co-founded by Ken Njoroge, former CEO of Cellulant. Other notable participants included Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and angel investors such as Benjamin Fernandes, founder and CEO of Nala, and Paul Kimani and Jackson Kibigo, co-founders of Workpay.
Chpter’s successful fundraising reflects the growing investor confidence in the startup’s potential. The company’s founders, who were previously involved in the YC-backed Kenyan e-commerce platform Marketforce, have a proven track record of success in the industry.
Although Chpter operates independently of Marketforce, some of its investors have previously participated in the latter’s funding rounds. The startup’s acceptance into the Norrsken Accelerator in 2023 and the Safaricom Spark Accelerator in May 2024 further solidified its position as a leading player in the conversational commerce space.
With the fresh injection of funds, Chpter is well-positioned to accelerate its growth and expand its e-commerce market reach. The company’s focus on providing businesses with a seamless and efficient e-commerce experience aligns with the increasing demand for digital solutions in Africa.