Chpter, a Kenyan e-commerce startup, has raised $1.2 million in a pre-seed funding round. The company, founded in 2022, aims to help businesses turn their social media presence into a direct sales platform by using chat, order, and payment tools. The funding will be used to improve Chpter’s technology and expand its operations into Egypt and Nigeria.
Chpter was launched by Tesh Mbaabu, Mesongo Sibuti, Kelvin Kuria, and Mark Kiarie, who are also the co-founders of Marketforce, a well-known e-commerce platform in Kenya backed by Y Combinator. The startup provides businesses with tools to transform social media channels like WhatsApp and Instagram from just marketing platforms into sales tools. Through Chpter’s platform, businesses can manage chats, take orders, and process payments, allowing for a seamless sales experience directly through social media.
The company charges a monthly subscription fee and takes a transaction fee from payments processed on its platform. Some of its notable clients include the insurance company Britam, shoe store Kicks Kenya, and e-commerce platform Phoneplace. Currently, Chpter operates in Kenya and South Africa, with plans to expand further across Africa.
Chpter’s $1.2 million funding round was led by Pani, an investment firm focused on Africa, co-founded by Ken Njoroge, the former CEO of Cellulant. Other investors included Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and several angel investors, such as Benjamin Fernandes, founder and CEO of Nala, and Paul Kimani and Jackson Kibigo, co-founders of Workpay.
The investment is seen as a strong vote of confidence in the young startup, which is still in its early stages. Interestingly, some of the investors in Chpter were also early backers of Marketforce, although Chpter operates independently. In fact, Chpter is not part of Marketforce but operates as a separate entity. However, Marketforce does hold shares in Chpter, according to CEO Tesh Mbaabu.
Chpter’s growth has been further accelerated by its participation in two prominent accelerator programs. The startup was accepted into the Norrsken Accelerator in 2023, a program designed to support high-impact startups. While the amount of investment from Norrsken was not disclosed, it helped put Chpter on the map as a key player in the field of conversational commerce.
In May 2024, Chpter also joined the Safaricom Spark Accelerator, which offered the company three months of training and mentorship to help it scale its operations. This program is run by Safaricom, a leading telecommunications company in Kenya, and focuses on supporting local startups with innovative ideas.
With the new funding and support from accelerator programs, Chpter is well-positioned for growth. The startup plans to enhance its technology stack by integrating with popular e-commerce platforms like Shopify and WooCommerce, and by connecting directly with social media APIs to offer a more comprehensive, end-to-end service to its customers.
By expanding into new markets such as Egypt and Nigeria, Chpter aims to reach more businesses across Africa and help them convert their social media presence into direct sales channels. The company is set to make significant strides in the e-commerce space, further establishing itself as a leader in the growing field of conversational commerce.
Chpter’s story is a testament to the potential of African startups to innovate and scale, making an impact both locally and internationally. With strong backing from investors and a clear vision for the future, Chpter is on track to revolutionize how businesses interact with their customers on social media.
