Tosin Osibodu - Afrikan Heroes

Chaka Raises Funding for Expansion in West Africa

July 26, 2021

Newest fintech startup Chaka has raised a pre-seed funding round to help its expansion drive across the West African market starting in Ghana. The funding worth US$1.5 million will assist in taking Chaka’s tech services, marketing, customer service and operations to brokers on behalf of their customers. The fintech equally provides unrestricted access to more than 4,000 stocks trading on capital markets, and is fully licensed by the SEC.

It could be recalled that Chaka was a recipient of a Digital Sub-Broker/Sub-Broker Serving Multiple Brokers through a Digital Platform License from the Securities Exchange Commission of Nigeria (SEC). This pre-seed funding round led by Breyer Capital and also featuring 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures will enable Chaka to continue on its mission to enable borderless investments across Africa and deliver digital investments solutions for African businesses. It will also be used towards the expansion of the startup’s footprint in West Africa to reach more retail investors and attract more foreign players to African capital markets.

“This is indeed a significant milestone for us at Chaka. We see digital investments as an opportunity to boost economic transformation in Africa, and our goal is to use this funding to bring this vision to life,” said Tosin Osibodu, co-founder and chief executive officer (CEO) of Chaka.

“With this capital, we will focus on our goals to build a roster of formidable partners and accelerate our expansion to other markets within Africa. This investment also enables us to hire top talent and integrate more advanced functionalities into our investment and wealth management solutions for businesses.”

Jim Breyer, CEO of Breyer Capital, said he was proud to combine efforts 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 Chaka’s team on their mission to drive borderless investments in Africa,” he said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Newly Licensed Nigerian Stock-trading Startup, Chaka, Raises $1.5m Pre-seed Funding

July 19, 2021

Chaka, a Nigerian stock-trading startup recently licensed by Nigeria’s central bank, has secured $1.5 million in pre-seed capital from Breyer Capital, a worldwide venture firm focused on stimulating growth in high-impact firms such as Spotify and Facebook. 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures are among the other investors in the round.

With this funding, Chaka will be able to focus on its aims of building a strong partner roster and expanding into new markets in West Africa. This investment also allows it to attract top staff and provide more advanced features to its investing and wealth management solutions.

“This is a significant milestone for us at Chaka and we could not have come this far without our users, partners, early investors, and a talented, achieving team of Chaka Champions. We see digital investments as a means to boost economic transformation in Africa, and we’re very keen to bring this vision to life,” Chaka noted in a statement.

Tosin Osibodu, CEO, Chaka — *Tosin Osibodu is the CEO of Chaka*. Image credits: Chaka

Why The Investors Invested

“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,” Jim Breyer, CEO of Breyer Capital.

The Nigerian Securities and Exchange Commission (SEC) recently issued its first license for the operation of digital platform for buying and selling stocks. Chaka was the first to obtain the digital sub-broker license, which was introduced by the SEC in April of this year. Sub-brokers who use digital platforms to serve numerous brokers were recognized by the SEC as part of a substantial update to its Consolidated Rules and Regulations.

The acquisition took “a significant amount of effort,” according to Tosin Osibodu, the startup’s CEO, and is the result of constant contact with the capital markets regulator.

The Securities and Exchange Commission (SEC) issued a statement on December 19, 2020, effectively prohibiting Chaka from operating in Nigeria. Chaka operated “beyond the Commission’s regulatory scope and without the appropriate registration, as stipulated by the Investment and Securities Act 2007,” according to the SEC’s statement.

A Look At What Chaka Does

Founded in 2019 by Tosin Osibodu, Chaka’s mission is to enable digital borderless investing for African businesses and individuals. The startup is powering the digital investment landscape in Africa through partnerships with asset managers, financial technology firms, and regulators with whom it has a shared mission. It achieves this by providing trading solutions that are easy to use and easy to integrate.

Chaka’s operations were based on a relationship with Citi Investment Capital Ltd, a Lagos-based broker regulated by the SEC, prior to the SEC’s license. The startup is now directly supervised by the SEC as a result of the formal license.
Over 4,000 equities from publicly traded firms in Nigeria and the United States are available on Chaka’s app.

Anyone with an internet-connected smartphone may download the app, register, and start investing with as little as $2 or as much as $1,000. Chaka is currently only accessible in Nigeria.

Chaka stock-trading Chaka stock-trading

Nigeria Regulates Foreign Stock-trading Startups Out Of The Country. Here Is What It Means

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer