Kenyan startup Chpter, which has developed an AI-powered conversational commerce platform that enables businesses to sell more on social platforms like WhatsApp and Instagram, has raised US$1.2 million in pre-seed funding to further develop its product and expand across Africa.
Chpter was launched in Kenya in 2022 by Kuria Kevin and Mark Kiarie, who were joined earlier this year by MarketForce’s Mesongo Sibuti and Tesh Mbaabu after they closed their B2B e-commerce platform RejaReja.
The startup’s AI-powered chat automation tools enable merchants to sell more on social platforms like WhatsApp and Instagram by automating conversations, marketing and payments all in one place.
Its US$1.2 million funding round was led by Pani, with participation from Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and angel investors including NALA’s Benjamin Fernandes, and WorkPay co-founders Paul Kimani and Jackson Kibigo.
Chpter will use the capital to accelerate product development, enhance sales and marketing efforts, and expand product availability across more countries in Sub-Saharan Africa. The platform is already live in Kenya and South Africa, and will roll out in at least five more markets, including Nigeria, Ghana, Egypt and Morocco, in the next few months.
“We are thrilled to pioneer the social commerce revolution, starting in Africa, as more and more consumers turn to social channels such as WhatsApp, Instagram, Facebook, and TikTok to communicate and purchase from the brands they love,” said Mbaabu, Chpter’s CEO.
“Specifically, WhatsApp’s role in business communication cannot be overstated. With more than two billion active users, it offers an unparalleled platform for businesses to offer support, engage in sales conversations, and maintain customer relationships.”
Ken Njoroge, managing partner at PANI, and previously founder and CEO of Cellulant, said his company was always on the lookout for founder teams with “incredible grit”.
“They embody the relentless passion and fight needed to build in Africa. When we find such founders, we walk with them and invest in them. For this reason, we’re glad to be part of the Chpter story and to support the growth of a product with the potential to transform how we buy and sell across the continent,” he said.
Ben Finlay, general partner at Plesion Capital, said his firm had invested in Chpter because of its “highly innovative technology and best-in-class leadership team”.
“Their digital solutions solve complex problems specific to African commerce, highlighting their potential for pan-African success, and their leadership team has the capability and experience to capitalise on this massive opportunity,” he said.
