Chipper Cash may be exploring exit options
Chipper Cash, a fintech company focused on Africa and backed by Silicon Valley Bank and cryptocurrency exchange FTX, is considering exploring a sale or seeking new investors, according to anonymous sources cited by Bloomberg.
The company claims it began considering these options prior to the collapse of Silicon Valley Bank (SVB) last week, and no final decisions have been made. In response to questions about the rumours, Chipper Cash said that while it's not uncommon to receive M&A proposals, it has never sought to be acquired.
The company raised $250 million in a funding round in 2021, led by SVB and FTX, which valued it at approximately $2 billion at the time, according to reports, SVB currently owns a 2% stake in the San Francisco-based company.
Emmanuel Oyedeji
As an SVB banking client, African tech companies such as Chipper Cash are heavily reliant on US capital. However, the company has multiple banking relationships in the US and a broad set of investors who are supportive of its long-term vision for the business, it said in a statement on Sunday.
Additionally, SVB's collapse is not expected to impact Chipper Cash's global customer operations, and US federal banking officials have announced that SVB's deposits would be fully insured.
