Chpter, co-founded by Tesh Mbaabu, is transforming Kenya’s social commerce landscape by enabling MSMEs to conduct transactions within platforms like WhatsApp and Instagram. The company provides essential technological support without acting as a marketplace. With a recent $1.2 million funding round, Chpter aims for expansion and enhanced profitability, positioning itself as a key player in the growing social commerce sector.
Chpter is navigating the expanding social commerce landscape in Kenya, where micro, small, and medium-sized enterprises (MSMEs) are increasingly leveraging social media for business engagement. Despite millions of Kenyans engaging on these platforms, a challenge remains in preventing cart abandonment when users are redirected away from their social feeds. Chpter addresses this issue by facilitating a seamless shopping experience within social platforms like WhatsApp and Instagram, enabling customer transactions without leaving their trusted environments.
Co-founded by Tesh Mbaabu, who previously established the B2B e-commerce platform Marketforce, Chpter provides essential technology to support MSMEs. Rather than selling products directly, Chpter enhances the sales capabilities of businesses using social media to connect with customers. The platform manages various aspects of order processing, payments, and customer interactions, effectively serving as an infrastructure layer without functioning as a marketplace.
Mbaabu stated, “In Africa, e-commerce is projected to reach over 500 million shoppers by 2025. Social media platforms such as WhatsApp, Instagram, Facebook, and TikTok have transformed into thriving online shopping hubs where a significant amount of buying and selling takes place.” Chpter allows businesses to utilize social media as a robust sales channel by offering effective marketing tools that surpass traditional SMS or email methods, particularly for order collection and payment processing.
Given that mobile penetration in Kenya exceeds 130% with social media users averaging over three hours online daily, the potential for social commerce is substantial. Chpter is capitalizing on this trend following a successful pre-seed funding round of $1.2 million. The company anticipates expanding its operations into other countries, including significant markets such as Egypt and Nigeria.
The startup’s funding round, led by Pani—an investment firm focusing on Africa—highlights investor confidence in Kenya’s social commerce potential. Other key investors include Plesion Capital, Techstars, Norrsken, Renew Capital, and various angel investors. Chpter has also benefited from participation in acceleration programs that have further developed its operational capabilities.
Mbaabu emphasized, “Yes, we do have plans to raise more funding, but we are prioritizing profitability before seeking the next round of growth capital.” The company utilizes a hybrid revenue model encompassing subscription fees and transaction-based charges, with pricing tiers designed for small to enterprise-level businesses.
Chpter requires a monthly SaaS fee dependent on business size, charging $50 for small entities, $120 for medium enterprises, and $550 for larger businesses. Additionally, it earns revenue from AI-driven sales agents that assist in customer interactions. As a Meta Business Partner, Chpter enables outbound marketing through WhatsApp messages, enhancing its revenue potential as it supports business/client connections.
Chpter facilitates easy onboarding through a self-service platform, allowing businesses to register, connect social accounts, and start utilizing its tools immediately. Ultimately, Chpter aims to establish itself as the foundational technology for social commerce, poised for significant influence as digital storefronts evolve on platforms like WhatsApp and Instagram. The industry’s trajectory suggests a burgeoning opportunity, focusing on technological advancements that shape social commerce operations.
Chpter is positioned at the forefront of Kenya’s burgeoning social commerce market, offering vital technology solutions to MSMEs. With a growing market potential highlighted by investor confidence and a clear focus on profitability, Chpter aims to enhance user experiences within social media platforms. The company’s proactive strategy in expanding beyond Kenya indicates a commitment to capturing evolving ecommerce dynamics across African markets, solidifying its role as a leader in social commerce technology.
Original Source: www.techinafrica.com
