by Terence Zimwara
After Chipper Cash ended 2021 as one of Africa’s most valued fintechs, the FTX-backed startup’s valuation dropped from $2 billion to $1.25 billion after it reportedly received a $35 million simple agreement for future equity (SAFE) grant from the now-collapsed crypto exchange FTX. Chipper Cash has also reportedly laid off 50 employees as it seeks to cope with the deteriorated macroeconomic environment.
Chipper Cash, one of the several African fintech startups to receive funding from FTX, saw its valuation drop from $2 billion to $1.25 billion after it secured additional funding from the now-collapsed crypto exchange, a Techcrunch report has said. The latest revelation came just as Chipper Cash was reported to have retrenched as many as 50 employees.
As previously reported by Bitcoin.com News, Chipper Cash, which was launched in 2018 by Ham Serunjogi and Maijid Moujaled, saw its valuation rise to over $2 billion after it received $150 million in a Series C extension round that was led by FTX in late 2021. Before that, the fintech had raised $100 million via its Series C round.
However, according to the Techcrunch report, the drop in the fintech’s valuation stems from the $35 million it received from FTX. Chipper Cash needed the new funding, which reportedly came in the form of a simple agreement for future equity (SAFE) grant, to help it deal with a tough macroeconomic environment, the report added.
Chipper Cash the Latest African Fintech to Lay Off Workers
Meanwhile, in what has seemingly become a custom adopted by fintechs when they lay off employees, Erin Fusaro, the vice president of engineering at Chipper Cash, urged tech firms looking for talented workers to consider hiring her former colleagues.
“This morning [Dec. 5] a significant amount of Chipper staff were let go in a layoff. While I was not among them, many of my close colleagues and friends were. If you’re looking for talented engineering leadership, engineers, technical program managers, analysts, or IT staff,” Fusaro said in a Linkedin post, “please comment here and I’ll do my best to start connecting people.”
Quidax and Nestcoin are two African fintechs to have similarly asked their better-positioned industry peers to consider recruiting their former employees.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized … read more.
NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% … read more.
Check all the news here
