Chpter is a Kenyan startup that provides technology solutions for social commerce, enabling businesses to conduct sales directly through platforms like WhatsApp and Instagram. Despite challenges in e-commerce, Chpter has secured $1.2 million in funding to expand its services and aims to tap into Kenya’s growing social commerce market. With strong backing from investors, Chpter is well-positioned to influence the future of online shopping in the region.
In Kenya, the burgeoning popularity of social commerce remains untapped, despite many micro, small, and medium-sized enterprises (MSMEs) adopting it to engage customers on social media. A significant hurdle for e-commerce is cart abandonment, as consumers prefer a seamless shopping experience within their social media feeds, highlighting a critical opportunity for MSMEs to conduct sales directly through these channels.
Chpter, co-founded by Tesh Mbaabu, is addressing this challenge by providing technology that integrates conversations, marketing, and payments directly on platforms like WhatsApp and Instagram. Rather than selling products directly, Chpter functions behind the scenes, facilitating transactions and order processing, which enhances the shopping experience for customers without operating as a marketplace.
As Mbaabu stated, “In Africa, e-commerce is projected to reach over 500 million shoppers by 2025,” indicating a great potential in social commerce. Chpter aims to transform social media from a marketing tool into a robust sales channel by enabling businesses to run effective marketing campaigns on WhatsApp while facilitating order collection and payments seamlessly.
With over 130% mobile penetration in Kenya and an average of three hours spent on social media per day, the landscape for social commerce is ripe for growth. Following a successful $1.2 million pre-seed funding round, Chpter is scaling its operations with plans to expand into other key markets, such as Egypt and Nigeria.
Chpter’s recent funding led by Pani, alongside other notable investors like Plesion Capital and Techstars, indicates strong interest in Kenya’s social commerce sector. The startup’s participation in accelerator programs, including Norrsken and Safaricom’s Spark Accelerator, illustrates its commitment to scaling up and refining its product in preparation for future growth.
Chpter focuses on building a strong user base before transitioning to profitability, adopting a hybrid revenue model composed of subscription fees and transactional charges. Monthly fees vary based on business size, with small businesses paying $50, medium-sized businesses $120, and enterprises $550. Additionally, the company’s AI-driven sales agents help manage customer interactions, generating revenue per conversation handled.
“We have built a self-service platform that allows businesses to register for a free trial,” remarked Mbaabu, emphasizing accessibility. Chpter positions itself as the backbone of social commerce technology, with long-term success contingent upon businesses’ adoption and effective use of its tools as WhatsApp and Instagram evolve as digital storefronts. The future of social commerce may hinge upon determining who ultimately controls the enabling technology.
In summary, Chpter is at the forefront of transforming Kenya’s social commerce landscape by providing essential technology for seamless transactions on social media platforms. The impressive funding and backing from various investors highlight the potential of social commerce in the region. As mobile usage continues to rise, Chpter’s innovative approach may prove vital for MSMEs aiming to capitalize on this burgeoning market.
Original Source: www.techinafrica.com
