ChipChip, an Ethiopian-based e-commerce platform, has raised an undisclosed investment from Renew Capital, a leading early-stage investment firm, alongside a group of international co-investors. The funding aims to bolster ChipChip’s mission of transforming online shopping in Africa through group buying, a model that links consumers directly with suppliers, driving down costs and fostering economic connections between local farmers and buyers.
Since its inception in 2023, ChipChip has been reshaping the e-commerce landscape by allowing consumers to form purchasing groups to unlock bulk prices, traditionally only available to large-scale buyers. Through the platform, consumers can pool their orders and purchase directly from farmers and suppliers, bypassing traditional intermediaries and enjoying significant cost savings. This approach has made high-quality, locally sourced produce and fast-moving consumer goods (FMCG) more affordable and accessible to everyday shoppers.
ChipChip’s Co-CEO, Amir Redwan, emphasized the platform’s potential to address critical challenges in African e-commerce. “Group buying is a game-changer for African consumers, enabling them to access better prices while supporting local producers. Our platform not only drives affordability but also strengthens the connection between buyers and suppliers across communities. With the backing of Renew Capital, we are well-positioned to expand and continue delivering value across Africa.”
The company’s innovative model also extends to businesses such as restaurants and hotels, offering them access to bulk pricing for essential goods. This approach promises to lower operational costs for businesses, further driving economic benefits for both the commercial sector and local suppliers. ChipChip also ensures that users experience a seamless online shopping process, featuring exclusive deals and a robust supply chain.
The investment from Renew Capital reflects a growing interest in scalable, impactful solutions that address some of Africa’s key market challenges. Adam Abate, Principal at Renew Capital, noted the broader significance of ChipChip’s group-buying model. “ChipChip is solving two of the biggest issues in African e-commerce — affordability and access to quality products. By connecting consumers directly to suppliers, they are not only bringing down prices but also fostering sustainable relationships between local producers and buyers. We are thrilled to support Amir and his team as they drive this shift in how communities engage with commerce.”
In addition to financial backing, Renew Capital’s investment comes with strategic support to help ChipChip scale its operations. Currently, the platform employs 40 full-time staff and 50 sourcing agents, a team composed of 33 women and 57 men. By the end of 2024, the company aims to expand to 400 employees, with a concerted effort to promote gender balance and recruit top talent. Renew Capital’s portfolio support, facilitated through a partnership with Global Affairs Canada, provides ChipChip with resources to fuel this growth trajectory.
With this investment, ChipChip is poised to extend its reach beyond Ethiopia, exploring new markets across Africa. As the continent continues to experience rapid digital and economic transformation, ChipChip’s model of group buying is seen as a solution that can address persistent challenges in cost and supply chain inefficiencies, particularly for consumers in underserved areas.
The platform’s success also comes amid rising interest in e-commerce solutions that cater to Africa’s growing middle class, offering affordable options while promoting local economies. ChipChip’s dual focus on driving savings for consumers and supporting local suppliers represents a promising intersection of digital innovation and economic empowerment.
Renew Capital is a pan-African early-stage investment firm that focuses on identifying and investing in high-potential startups across the continent. By working with growth-oriented founders, the firm aims to develop vibrant private sectors and deliver scalable solutions to Africa’s most pressing needs. Renew Capital’s investments are designed to build the foundation for sustainable economic growth, helping to unlock opportunities in smaller capital markets.