Chipper Cash, a pan-African fintech startup, has launched an advertising product after a tumultuous period marked by multiple layoffs and significant restructuring. The move comes as the company, once a celebrated unicorn, navigates a challenging macroeconomic environment and seeks to regain its footing.
“There’s a lot more in store, and upcoming updates will include even more sophisticated targeting capabilities,” CEO Ham Serunjogi said in a LinkedIn post.
The “Chipper Ads” platform is being positioned to help small and medium-sized enterprises (SMEs) in Africa reach more people. The company’s virtual USD card has already seen adoption by Nigerian businesses for paying for social media ads on international platforms.
This new focus comes on the heels of a difficult chapter for Chipper Cash. The company has conducted at least four rounds of layoffs since December 2022, impacting hundreds of employees across its various markets, including the US, UK, and several African nations. The workforce reduction has been accompanied by a significant management shake-up, with the departure of key executives, including the Chief Operating Officer.
SponsoredThe company also faced headwinds from the collapse of key investors, including FTX and Silicon Valley Bank, which prompted a temporary suspension of its US operations in 2024. Services in the United States have since resumed.
In a move that signals a potential path to recovery, Chipper Cash recently announced a major partnership with Ripple, the blockchain and crypto solutions provider. The collaboration will leverage Ripple’s crypto-enabled payment technology to facilitate faster and more cost-effective cross-border payments to Africa, a core part of Chipper Cash’s original mission. This partnership is a significant development, potentially enhancing Chipper Cash’s remittance and cross-border payment services, which remain a key part of its consumer-facing business.
Chipper Cash’s pivot to a more business-focused model, including facilitating ad payments, is a strategy being adopted by other players in the African tech ecosystem. Food delivery service Chowdeck, for instance, has also reportedly ventured into offering advertising services to its restaurant partners. This trend of diversification highlights the pressure on African startups to find new revenue streams and build more resilient business models beyond their initial core offerings.
