According to a report from Bloomberg published today, Chipper Cash, one of Africa’s more prominent fintech companies and unicorns, is reportedly considering selling the company or seeking new investors. Bloomberg said the conversations are private, but Chipper Cash told the publication that it never sought to be acquired. According to a response sent to Bloomberg from Chipper Cash, “It’s been fairly common practice for us to receive various M&A proposals from different parties, which we evaluate to varying degrees. “That being said, we have never sought to be acquired.”
Chipper Cash downplays SVB exposure, but new claims may show otherwise
The company has been in the news recently after reports that it had some money in Silicon Valley Bank. In a statement, the company said its exposure was only $1 million and that it would not affect its operations. Despite this, Fatu Ogwuche, the publisher of Big Tech This Week, disagreed with Chipper’s version of events, reporting that the startup had $3 million. Whatever the actual amount, US regulators’ decision to make all depositors whole means it may merely be an academic argument.
What is clear is that it may be a more challenging year than usual for Africa’s unicorns looking to raise money. TechCabal reported earlier that Flutterwave’s IPO plans may suffer a delay this year, with unconfirmed reports that the company may have to raise money at a lower valuation than $3 billion.
With the option of going public looking unlikely, Chipper Cash may suffer a slash in valuation if it raises money this year. Its previous valuation at its $250 million fundraise was $2 billion.
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