Chpter Secures $1.2 Million Pre-Seed Funding to Revolutionize Social Commerce in Africa

Chpter, an innovative AI-powered social commerce platform, has successfully raised $1.2 million in Pre-Seed funding, signaling a significant milestone in its mission to transform the way businesses engage with customers on social media. The funding round, which attracted several investors well-versed in the Kenyan startup ecosystem, was led by Ken Njoroge, the Cofounder and Former CEO of Cellulant, through his investment firm PANI. The round also saw participation from Plesion Capital, Techstars, and angel investors including NALA Founder Benjamin Fernandes, as well as the Cofounders of Workpay, Paul Kimani and Jackson Kibigo.

Pioneering Social Commerce in Africa

Launched in Kenya in 2022 by Tesh Mbaabu (CEO), Mesongo Sibuti (CTO), Kuria Kevin (CPO), and Mark Kiarie (COO), Chpter aims to leverage the increasing popularity of conversational commerce to boost business sales across social media platforms such as WhatsApp, Instagram, Facebook, and TikTok. The startup plans to utilize the fresh capital to accelerate product development, expand its geographic footprint, and enhance its sales and marketing strategies. In the coming months, Chpter intends to expand its services into at least five additional markets, including Nigeria, Ghana, Egypt, and Morocco.

Tesh Mbaabu, Chpter’s Co-Founder and CEO, expressed his enthusiasm about leading the social commerce revolution in Africa. “We are thrilled to pioneer the social commerce revolution, starting in Africa, as more and more consumers turn to social channels such as WhatsApp, Instagram, Facebook, and TikTok to communicate and purchase from the brands they love,” said Mbaabu.

Chpter Harnessing the Power of WhatsApp for E-commerce

Chpter’s approach to social commerce is centered around WhatsApp, a platform with over 2 billion active users worldwide. The platform’s wide adoption, low data consumption, and user-friendly interface make it particularly suited for markets with low digital literacy. “A WhatsApp-led e-commerce experience makes it more inclusive and accessible to the underserved mass market, due to its low data and digital literacy requirements as well as the over 95% usage rate in many emerging markets,” explained Mark Kiarie, Co-Founder and COO at Chpter.

Chpter’s AI-powered platform enables businesses to automate customer interactions, manage orders, and handle payments, all within the social media environments where their customers already spend significant time. By focusing on these popular platforms, Chpter aims to boost customer engagement and drive sales for businesses, effectively shortening the sales cycle and reducing the number of abandoned carts—a common issue in traditional e-commerce setups.

Expanding Capabilities with Meta Partnership

In a bid to enhance its offerings, Chpter recently became an approved Meta Partner, granting it access to advanced features on Facebook, Instagram, and WhatsApp. This partnership allows Chpter to offer businesses the ability to set up product catalogs, streamline checkout processes, send targeted marketing campaigns, and automate customer interactions, all within the Meta ecosystem. Additionally, the introduction of chpter.AI enables businesses to deploy AI-driven chatbots and sales/customer service agents, ensuring timely responses to customer inquiries and improving sales conversion rates.

Backing from Strategic Investors

Ken Njoroge, Managing Partner at PANI, emphasized the importance of supporting resilient and passionate founder teams in Africa. “At Pani, we’re always on the lookout for founder teams with incredible grit—they embody the relentless passion and fight needed to build in Africa. When we find such founders, we walk with them and invest in them. For this reason, we’re glad to be part of the Chpter story and to support the growth of a product with the potential to transform how we buy and sell across the continent,” Njoroge stated.

Ben Finlay, General Partner at Plesion Capital, echoed this sentiment, highlighting the innovative nature of Chpter’s technology and its potential for pan-African success. “We invested in Chpter because of their highly innovative technology and best-in-class leadership team. Their digital solutions solve complex problems specific to African commerce, highlighting their potential for pan-African success, and their leadership team has the capability and experience to capitalize on this massive opportunity,” Finlay added.

Looking Ahead

Chpter is already operational in Kenya and South Africa and is gearing up to expand into new markets across Sub-Saharan Africa. The platform is poised to power hundreds of businesses across various sectors, including e-commerce, retail, financial services, education, media, travel, health, and wellness. Notable clients include Britam, Decathlon, Dovey Pharma, Kicks Kenya, TSHEPO, Galxboy SA, and City Walk, among others.

As Chpter continues to grow, it remains committed to revolutionizing social commerce by providing businesses with the tools they need to succeed in the digital age. With its robust AI-driven platform, strategic partnerships, and a strong leadership team, Chpter is well-positioned to lead the social commerce revolution across Africa.