In 2022, Chipper Cash, a Pan-African fintech unicorn, announced its intentions to acquire Zoona Transactions International, a Zambian financial technology firm. The deal was positioned as a strategic move for Chipper Cash to deepen its footprint in Southern Africa by incorporating Zoona’s established agent network and broadening its suite of financial services. At the time, the acquisition seemed like a pivotal moment for both companies. However, one year after the acquisition was completed, Zoona’s former leadership believes that although the deal meant a pivotal chapter in the company’s history, it could also hold some lessons for the African startup ecosystem on navigating exits and scaling sustainably.
Now leading portfolio efforts at the Nairobi-based AHL Venture Partners, Brad Magrath, co-founder and former Group CEO of Zoona, recently expressed regret over what he described as a missed 10x exit opportunity:
“We once had the chance for a 10x exit after achieving $6 million in trailing annual EBITDA. Without a clear exit strategy, we missed a valuable opportunity, believing too strongly in our billion-dollar vision. Having clarity on exits and stakeholders’ ambitions is critical as you scale,” Magrath said, in a rather subdued tone.
The revelations seem rather timely. The chase for unicorn status and billion-dollar exits in the African startup ecosystem is rife, and Magrath’s insights provide a deflating truth: not all exits are going to be ‘huge’, and the earlier a clearer exit plan is created and internalized, the better.
Founded in 2009 by brothers Brad and Brett Magrath, Zoona began as a domestic money transfer service leveraging a network of small business agents. From its first outlet in Lusaka’s central business district, the company grew rapidly, reaching over 200 locations in Zambia by 2016. Its success led to expansions into Malawi and Mozambique, fulfilling an urgent need for accessible financial services in underserved markets. In 2020, international money remittance service Mukuru acquired Zoona’s operational assets in Malawi along with the technology systems that support its Malawian operations.
This expansion came with its challenges, but Zoona successfully pivoted to offer interoperable solutions, partnering with mobile network operators, banks, and other financial service providers. By 2023, its agent network had transformed into a platform offering over 15 partner products, creating a one-stop-shop experience for customers across more than 700 locations in Zambia.
The introduction of Tilt, a brand launched in 2019 to cater to business customers, further showcased Zoona’s innovative approach. With services like bulk disbursements and collections, Tilt became a trusted solution for NGOs, corporations, and government agencies.
In 2023, Chipper Cash, co-founded by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled, completed the acquisition of Zoona. The San Francisco-headquartered fintech has been a rising star on the African continent, offering no-fee peer-to-peer payments and financial services to over five million users across countries like Nigeria, Uganda, Ghana, and Rwanda. The Zoona acquisition was part of Chipper’s broader strategy to expand its agent network and tap into Zambia’s growing financial services market.
The integration aimed to leverage Zoona’s established physical presence with Chipper’s digital-first model, creating synergies for enhanced service delivery. However, the legacy of Zoona’s growth and its missed opportunities highlight broader lessons for Africa’s startup ecosystem.
The Bottom Line
Today, Zoona’s network remains an integral part of Chipper Cash’s operations in Zambia, contributing to its broader mission of increasing financial inclusion across Africa. Meanwhile, its legacy serves as a case study for entrepreneurs striving to build scalable, impactful businesses on the continent. A lack of clear alignment between founders, investors, and other stakeholders can result in missed opportunities or mismanaged expectations.
As the fintech space in Africa continues to evolve, the reflections of pioneers like Magrath will likely shape the next generation of startups — reminding them that in the pursuit of unicorn status, clarity on exits is as vital as innovation in products and services.