Flutterwave collaboration propels Chapter's growth into 11 African markets
In a significant move, Kenyan software startup Chpter has expanded its operations to 14 African countries, following a strategic partnership with fintech giant Flutterwave. This expansion includes the addition of 11 new markets—Ghana, Senegal, Ivory Coast, Cameroon, Uganda, Tanzania, Rwanda, Egypt, Burkina Faso, Malawi, and Zambia—to its existing presence in Kenya, Nigeria, and South Africa.
The announcement was made by Tesh Mbaabu, the co-founder and president of Chpter, who stated that the company has acquired 1,500 merchants in under 4 months this year. This growth underscores the demand for Chpter's services, which are designed to empower businesses in Africa to thrive in the digital age.
Chpter recently launched Pluto, a WhatsApp API suite that enables businesses to build full customer journeys on the platform. As a Meta Business Partner, Chpter offers additional features like in-chat checkout, marketing tools, and a unified dashboard for managing conversations across platforms.
In September 2024, Chpter raised $1.2 million in pre-seed funding led by Pani, the investment firm co-founded by former Cellulant CEO Ken Njoroge. Other investors include Techstars, Norrsken, Renew Capital, and several angels. The startup operates a subscription model ranging from $50 to $550 per month, depending on business size.
Chpter's expansion signifies its ambition to scale its Software-as-a-Service (SaaS) model across Africa. The company generates additional revenue through paid messaging and AI interactions. Currently, approximately 45% of Chpter's customer interactions are handled by AI, a figure the company aims to grow to over 80%.
CEO Mark Kiarie mentioned that 60% of inbound traffic for Chpter merchants comes through WhatsApp and Instagram. To cater to this trend, Chpter is pursuing an AI-first strategy, restructuring its team and introducing AI-powered sales and customer service agents.
This expansion is a testament to Chpter's commitment to localising pricing and product design to ensure SaaS can scale in Africa. The company's new markets can now accept payments via mobile money, cards, and bank transfers in local currencies or USD, thanks to Flutterwave's payment infrastructure.
As Chpter continues to grow and innovate, it is poised to play a significant role in the digital transformation of African businesses, making it easier for them to connect with customers and grow their operations.
Technology plays a pivotal role in Chpter's expansion, as the company recently launched Pluto, a WhatsApp API suite, and is pursuing an AI-first strategy to cater to the increasing inbound traffic from WhatsApp and Instagram.
The strategic partnership with fintech giant Flutterwave will enable Chpter's new markets to accept payments via various methods, including mobile money, cards, and bank transfers in local currencies or USD, demonstrating the company's commitment to adapting its finance operations to diverse African markets.
