Report: Chipper Cash Valuation Dropped to $1.25 Billion After it Secured Additional Funding From FTX
After Chipper Cash ended 2021 as one of Africa’s most valued fintechs, the FTX-backed startup’s valuation dropped from $2 billion to $1.25 billion after it reportedly received a $35 million simple agreement for future equity (SAFE) grant from the now-collapsed crypto exchange FTX. Chipper Cash has also reportedly laid off 50 employees as it seeks to cope with the deteriorated macroeconomic environment. FTX’s Simple Agreement for Future Equity
Chipper Cash, one of the several African fintech startups to receive funding from FTX, saw its valuation drop from $2 billion to $1.25 billion after it secured additional funding from the now-collapsed crypto exchange, a Techcrunch report has said. The latest revelation came just as Chipper Cash was reported to have retrenched as many as 50 employees.
As previously reported by Bitcoin.com News, Chipper Cash, which was launched in 2018 by Ham Serunjogi and Maijid Moujaled, saw its valuation rise to over $2 billion after it received $150 million in a Series C extension round that was led by FTX in late 2021. Before that, the fintech had raised $100 million via its Series C round.
However, according to the Techcrunch report, the drop in the fintech’s valuation stems from the $35 million it received from FTX. Chipper Cash needed the new funding, which reportedly came in the form of a simple agreement for future equity (SAFE) grant, to help it deal with a tough macroeconomic environment, the report added.
Chipper Cash the Latest African Fintech to Lay Off Workers
Meanwhile, in what has seemingly become a custom adopted by fintechs when they lay off employees, Erin Fusaro, the vice president of engineering at Chipper Cash, urged tech firms looking for talented workers to consider hiring her former colleagues.
“This morning [Dec. 5] a significant amount of Chipper staff were let go in a layoff. While I was not among them, many of my close colleagues and friends were. If you’re looking for talented engineering leadership, engineers, technical program managers, analysts, or IT staff,” Fusaro said in a Linkedin post, “please comment here and I’ll do my best to start connecting people.”
Quidax and Nestcoin are two African fintechs to have similarly asked their better-positioned industry peers to consider recruiting their former employees.
Register your email here to get a weekly update on African news sent to your inbox:
Tags in this story Chipper Cash, Erin Fusaro, Fintech, ftx, Nestcoin, Quidax
What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Kevin O"Leary Reveals FTX Paid Him $15 Million to Become a Spokesperson for the Exchange FEATURED | 2 days ago JPMorgan Chase CEO Jamie Dimon Likens Crypto to Pet Rocks — Calls for More Regulation FEATURED | 3 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleEuropean Union to Put a 10,000-Euro Limit on Cash Payments; Transactions Over €1,000 in Crypto Will Be Scrutinized Next articleBank of Russia Backs Crypto Mining Bill But Insists Minted Coins Should Be Exported Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing