TLDR:
- Kenyan startup Chpter raised $1.2 million in pre-seed funding for its e-commerce venture
- Chpter integrates AI-powered conversational tool with WhatsApp and Instagram to facilitate social selling
Kenyan startup Chpter, founded by the creators of MarketForce, has secured $1.2 million in a pre-seed funding round for its new e-commerce venture. Chpter integrates an AI-powered conversational tool with popular platforms like WhatsApp and Instagram to enable consumers and entrepreneurs to engage in social selling. The funding will allow Chpter to expand its operations into Egypt and Nigeria. Investors in the funding round include Ken Njoroge of Pani, Techstars, Norrsken, Renew Capital, and ViKtoria Ventures. The platform enables businesses to list products, interact with customers, and complete sales online using WhatsApp payment services. Chpter aims to make social commerce more inclusive and accessible to underserved markets with low data and digital literacy requirements.
The spin-off from MarketForce, which ceased operations in April, Chpter aims to fill the gap left by its predecessor’s closure. MarketForce, an e-commerce platform serving small and informal businesses, supported over 270,000 retailers across Kenya, Nigeria, Uganda, Tanzania, and Rwanda before shutting down. The company had raised $40 million but faced challenges due to intense competition and profit issues. MarketForce’s initial goal was to digitize supply chains for African merchants, but its expansion model failed amidst the pandemic, fundraising difficulties, and slim profit margins. Chpter’s approach highlights the growing importance of e-commerce in African markets, as nearly half of the continent is expected to engage in online transactions by 2026.
