Ugandan fintech ChapChap, secures funding to accelerate expansion within and beyond its borders
Ugandan fintech startup ChapChap has secured funding to accelerate growth and social impact creation. The funding round was led by Nordic Impact Funds and conducted through the Investure-Impact Exchange.
ChapChap provides financial support to small and medium enterprises by creating a financial profile for low-income individuals and businesses and making it easier to access trade, affordable credit facilities, cost-effective financial services, and sufficient employment. ChapChap leverages flexible, innovative digital technology that enables the last mile, low-income consumers, to access the goods and services they require.
ChapChap was co-founded in 2016 by Emmanuel Emodek and James Alituhikya, together with their former primary school teacher Monica Asiimwe Kiconco who they got reunited after about 25 years. The goal behind ChapChap is to empower MSMEs by giving them access to digital financial tools and resources to help them scale and grow their businesses.
The platform builds an organized network of micro, small and medium enterprises. It uses their aggregate strength to create a lasting impact in the communities they serve by becoming access points for various products and services. ChapChap android app helps small businesses operate mobile money transactions, keep track of all business transactions, and build a credit profile.
Chapchap reports being serving more than 20,000 MSMEs in Uganda. With the secured funding, they envision expanding more within and beyond Uganda. Commenting on the funding, Emmanuel Emodek, Co-founder and Managing Director, said, “We are excited to start 2022 with this capital injection to accelerate our expansion within and beyond the Ugandan market… This injection is to facilitate the digital capacity and financial inclusion for a million customers.”
The startup, ChapChap, was recognized among the 2021 global winners of Inclusive Fintech 50 powered by the Center for Financial Inclusion (CFI), including other fintech as Fedapay SAS, Leaf Global, Flash, MobiCash, Okapi Finance, Payper, and others.
Nordic Impact Funds is an investment management company in Copenhagen, Denmark, with an investment office in Nairobi. Nordic Impact Funds invest in early to mid-stage companies with a demonstrated impact and profitability that are in the process of scaling their businesses. They are also gender-inclusive and actively partner with the companies they fund. They have made investments in 3 East African companies that focus on community development in underserved communities.
Lisbeth Stausholm, the Founder and Managing Partner of Nordic Impact Funds, said, “ We are extremely proud of this investment. It has a strong focus on small and often women-owned businesses, who can professionalize and expand their businesses thanks to ChapChap.”
Investure is an impact exchange working to bridge the widening funding gap between investors and tech startups in developing markets. It uses blockchain technology to eliminate barriers to investment through the digitalization of private market transactions, asset servicing, and creating liquidity through a secondary market.
Joakim Blom, Co-founder and CEO of Investure, commented, “The African continent has many opportunities for investors and businesses. But, it can be risky and costly to navigate through the uncertainties. That is why we at Investure are here to provide structured information, a complete professional data room, and an end-to-end investment process. So that investors like Nordic Impact Funds can receive all the information they need via the platform.”