Chpter, co-founded by Tesh Mbaabu, aims to capitalize on Kenya’s burgeoning social commerce market by enabling businesses to sell directly through platforms like WhatsApp and Instagram. With recent funding of $1.2 million, Chpter plans to enhance its technology and expand into new markets. The company operates on a hybrid revenue model and focuses on transforming social media into a fully integrated sales channel for enterprises.
Kenya’s social commerce sector is on the rise, yet it has yet to fully leverage its potential despite the widespread use of social media. Numerous micro, small, and medium-sized enterprises (MSMEs) are utilizing social platforms to engage customers. However, cart abandonment due to redirection from these platforms has hindered e-commerce growth, creating an opportunity to facilitate purchases directly within social media environments, thereby converting user engagement into transactions effectively.
Chpter, founded by Tesh Mbaabu, who also started the YC-backed platform Marketforce, aims to close this gap. The venture automates conversations, marketing, and payment processes across platforms such as WhatsApp and Instagram, serving as a technological intermediary rather than a direct marketplace. This allows businesses to focus on seamless order processing and customer interaction without the complications of traditional e-commerce models.
According to Mbaabu, e-commerce in Africa is anticipated to exceed 500 million shoppers by 2025, with social media platforms transforming into significant online retail spaces. Chpter enables enterprises to utilize social media not only for marketing but as integrated sales channels, offering superior engagement through WhatsApp marketing campaigns and facilitating direct payments within social applications.
With over 130% mobile penetration and users averaging three hours on social media daily, the potential for social commerce in Kenya is vast. Chpter’s recent achievement of $1.2 million in a pre-seed funding round will enhance its technology and expansion efforts into markets such as Egypt and Nigeria, indicating strong growth aspirations.
Supporters of Chpter recognize the immense untapped potential in Kenya’s social commerce landscape. The pre-seed funding was led by Pani, an investment firm focused on Africa, along with contributions from Plesion Capital, Techstars, Norrsken, Renew Capital, and key angel investors. Prior to securing this funding, Chpter participated in recognizable accelerators, enhancing its visibility and operational capabilities.
Growth-focused ventures like Chpter prioritize market expansion and user acquisition over immediate profitability. CEO Mbaabu has stated the intention to seek additional funding while emphasizing the importance of achieving profitability first. The company employs a hybrid revenue model that consists of subscription-based fees, transaction charges, and partnerships.
Businesses on the Chpter platform pay a monthly Software-as-a-Service (SaaS) fee based on their size, ranging from $50 for small enterprises to $550 for larger ones. The company charges for customer interactions that are processed by its AI-driven sales agents and also facilitates outbound messaging for marketing, creating another revenue stream.
Chpter’s self-service platform allows businesses to initiate a free trial, connect social media accounts, and benefit from the technology offered. The aim is to be recognized as the foundational infrastructure for social commerce. Ultimately, the future of Chpter hinges on how well businesses embrace and leverage its tools in an evolving digital retail environment.
Chpter is positioning itself to significantly impact Kenya’s social commerce market. By automating interactions and facilitating payments through social media, the venture optimally bridges the gap between user engagement and transactions. With strong funding and a clear growth trajectory, Chpter’s future will revolve around its infrastructure enabling businesses to thrive in the social commerce domain.
Original Source: www.techinafrica.com
