Pre-seed funding of US $1.2 million has been raised by Kenyan startup Chpter, which has created an AI-powered conversational commerce platform that helps companies to sell more on social media sites like Instagram and WhatsApp. The company plans to use the money to develop its product further and expand throughout Africa.
Kuria Kevin and Mark Kiarie founded Chpter in Kenya in 2022. Mesongo Sibuti and Tesh Mbaabu of MarketForce joined them earlier in the year following the closure of their B2B e-commerce platform RejaReja.
With the help of the startup’s AI-powered chat automation tools, merchants can increase sales on social media platforms like Instagram and WhatsApp by centralizing marketing, payments, and conversations.
Lead investor Pani raised US $1.2 million for the company; other investors included Benjamin Fernandes of NALA, Paul Kimani and Jackson Kibigo, co-founders of WorkPay, Plesion Capital, Techstars, Norrsken, Renew Capital, and ViKtoria Ventures.
Chpter plans to use the funds to improve sales and marketing initiatives, expedite product development, and increase product availability in additional Sub-Saharan African nations. The platform is currently operational in Kenya and South Africa, and within the next few months, it will expand to at least five additional markets, namely Nigeria, Ghana, Egypt, and Morocco.
“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’s CEO.
“Specifically, WhatsApp’s role in business communication cannot be overstated. With more than two billion active users, it offers an unparalleled platform for businesses to offer support, engage in sales conversations, and maintain customer relationships.”
Former CEO and founder of Cellulant Ken Njoroge, managing partner at PANI, stated that his firm was always searching 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,” he said.
Plesion Capital’s general partner Ben Finlay stated that his company had invested in Chpter due to its “very 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 capitalise on this massive opportunity,” he said.
