Nigerian fintech startup, Chaka has announced a pre-seed investment of $1.5 million led by Breyer Capital. Other investors in the round include Future Africa, Golden Palm Investments, Seedstars, Musha Ventures, and 4DX Ventures.
Founded in 2019 by Tosin Osibodu, Chaka enables Nigerians to invest in local and global companies from the comfort of their phones.
For a long time, investing in stocks for Nigerians was limited to high net worth individuals. But, the emergence of startups like Chaka, Bamboo,Trove and Risevest levelled the playing field, paving the way for regular Nigerians to come into the stock market.
With this fresh injection of cash, the company plans to expand to other West African countries, hire more talents, form more partnerships, and integrate more advanced functionalities into their investment and wealth management solutions.
Jim Breyer, CEO of Breyer Capital, expressed his confidence in Chaka’s mission. “We are proud to align ourselves with a company that is levelling the investment playing field for Nigerians (and Africans at large). We’re confident in the value Chaka provides through its digital tools, and we look forward to playing our part in supporting Tosin, Bo, Olaolu, and the Chaka team.
Recently, the startup secured the first digital stock trading license in Nigeria in June, allowing the company to work with multiple stockbrokers. This came after it had faced some opposition from the Securities and Exchange Commission (SEC) in December 2020.
Following the license acquisition, Osibodu revealed that the startup would no longer need to operate through a broker as they now have direct oversight from the SEC.
With more Nigerians getting financially savvy, digital platforms like Chaka that provide an avenue to grow wealth have become increasingly popular. The startup’s expansion plans make it well poised to extend these benefits to other markets.