Chipper Cash Lays Off 50 Employees Amidst Financial Struggles
Pan-African fintech startup Chipper Cash has announced significant job cuts, with 50 employees let go across various departments. This comes amidst reports of financial struggles and a previous investment from now-bankrupt exchange FTX.
The layoffs, which occurred in the wake of FTX's collapse, saw the engineering department bear the brunt, losing 60% of its staff. This is a stark turnaround for the company, which was valued at $2 billion in a series C extension just last year, making it one of Africa's five unicorns. The round was led by FTX, which also explored integration with Chipper Cash for its African users.
The company's valuation was later clipped to $1.25 billion in November 2022, with an additional $35 million in SAFE received from FTX at that valuation. However, due to FTX's insolvency, it's unclear if all invested funds were received by Chipper Cash and other portfolio companies.
Chipper Cash's layoffs, affecting 12.5% of its workforce, reflect the broader challenges faced by the company and the fintech industry. While not directly caused by a single firm, these challenges may stem from general economic conditions or specific market pressures in Africa. Despite these setbacks, Chipper Cash remains a significant player in the pan-African payments landscape.
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