Chpter, a Kenyan e-commerce startup founded by the architects of the YC-backed Marketforce, has successfully raised $1.2 million in a pre-seed funding round.
The company aims to enhance its technology stack and expand its operations into the Egyptian and Nigerian markets.
Founded in 2022 by Tesh Mbaabu, Mesongo Sibuti, Kuria Kevin, and Mark Kiarie, Chpter is revolutionizing how businesses leverage social media for sales.
The startup enables firms to transform social platforms from mere marketing channels into comprehensive sales solutions by providing tools for chat, ordering, and payment processing.
Its business model includes a monthly subscription fee and transaction fees for payments processed through its platform. Notable clients include notable brands like Britam, Kicks Kenya, and Phoneplace, with operations in Kenya and South Africa.
“We are investing in our tech stack to offer an end-to-end product, connecting APIs from social media platforms like WhatsApp and Instagram with popular e-commerce and CRM systems such as Shopify and WooCommerce,” stated Tesh Mbaabu, Chpter’s co-founder and CEO.
The funding round was spearheaded by Pani, an investment firm focused on Africa and co-founded by Ken Njoroge, former CEO of Cellulant.
Other contributors include Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and angel investors such as Nala’s Benjamin Fernandes and Workpay’s co-founders Paul Kimani and Jackson Kibigo.
This recent influx of capital reflects a strong vote of confidence from investors in Chpter’s potential. The startup’s co-founders leveraged their experience from Marketforce, which once garnered a valuation exceeding $100 million.
Despite its ties to Marketforce, Mbaabu clarified that Chpter operates independently, although Marketforce retains some ownership in the new venture.
“Chpter was and is not under the MarketForce umbrella. It will continue to operate independently,” he emphasized in a recent interview.
Chpter’s participation in the Norrsken Accelerator in 2023 and the Safaricom Spark Accelerator in May 2024 has increasingly positioned it as a significant player in the conversational commerce sector.
While the investment from Norrsken remains undisclosed, sources indicate that Safaricom’s Spark Accelerator invested between $150,000 and $500,000, although it did not take part in the pre-seed funding round.
