Months after conversations started between each firms, TechCabal can now affirm that fintech startup Risevest has absolutely acquired digital buying and selling startup Chaka. Tosin Osinbodu, Chaka’s founder and Eke Urum, the founding father of Risevest, confirmed the deal was concluded and authorized on Tuesday morning. “We’re excited, particularly from the attitude of individuals; excessive stage and strategically, this deal is smart,” stated Osinbodu. “I’m enthusiastic about how Chaka’s product will evolve and the way we’re going to study from the Risevest staff.”
Whereas each firms declined to touch upon the transaction’s value, they informed TechCabal that Chaka and RiseVest will stay separate merchandise. Per Eke, whereas Chaka’s possession and cap desk will get up to date, “every little thing else stays; the staff stays the identical.” Each firms will proceed to work on their product roadmaps and collaborate to enhance merchandise. In keeping with Eke, offers like this are important to Nigeria’s tech ecosystem and current a possibility for collaboration.
One particular person acquainted with the matter stated that each firms maintain complimentary licences, offering a glimpse into why the acquisition was good for RiseVest. Eke and Osinbodu declined to remark.
Based in 2019, Chaka calls itself an “funding passport” for customers. With the Chaka app, customers can purchase shares of publicly traded firms in Nigeria and america for as little as $2. Customers may purchase fractional shares, lowering the price of entry to investing.
Chaka has had an attention-grabbing existence and confronted an existential scare in December 2020 when the Safety and Alternate Fee (SEC) banned the firm from working and promoting to clients in Nigeria. The SEC stated Chaka didn’t have a licence for the service it was selling. But after engagement with the regulator, Chaka turned the primary buying and selling startup to receive a digital sub-broker licence in March 2021.
How the deal occurred
Eke informed TechCabal {that a} mutual investor first recommended the concept of a deal to him early within the yr. Casual talks started in March 2023; Tosin and Eke shared that they received alongside rapidly and joked about how they might have been cofounders in a distinct life. “The primary dialog we had about this was: that is the place Chaka is making an attempt to go; I’m wondering if this might occur. Traders on either side have additionally all the time been conscious. To my data, all traders purchased in once we spoke to them about this deal.”
“Realizing how a lot we’ve got put in, the traders perceive that we’re dedicated to it. I feel the traders are actually glad about this end result and what the longer term holds,” Osinbodu concluded.