Chpter is revolutionizing social commerce in Kenya by developing technology that enables businesses to sell through WhatsApp and Instagram. Founded by Tesh Mbaabu, it automates marketing, conversations, and payments, presenting a solution to challenges such as cart abandonment. The recent $1.2 million funding will support its growth and expansion into new markets.
Kenya is witnessing a surge in social commerce among micro, small, and medium-sized enterprises (MSMEs), although the nation has yet to fully capitalize on this trend. As millions of Kenyans engage with social media, businesses are increasingly using these platforms to connect with customers. A significant challenge is cart abandonment, as consumers often prefer to shop without leaving their preferred social networks. Enabling purchases within social media is crucial to overcoming this barrier, thus enhancing the social commerce landscape.
Chpter, established by Tesh Mbaabu—the co-founder of Marketforce, a B2B e-commerce platform—has developed a solution for automating conversations, marketing, and payment processing on WhatsApp and Instagram. By not directly selling products, Chpter provides essential technology that allows other businesses to sell effectively through social channels. Acting as an intermediary, Chpter manages orders, payments, and customer interactions without serving as a traditional marketplace.
Mbaabu remarked, “In Africa, e-commerce is projected to reach over 500 million shoppers by 2025. Social media platforms such as WhatsApp, Instagram, Facebook, and TikTok have transformed into thriving online shopping hubs.” Through its innovations, Chpter enables businesses to turn social media into an integrated sales channel, facilitating better engagement through WhatsApp marketing campaigns and allowing for seamless order and payment processes.
The market potential is substantial, with mobile penetration in Kenya exceeding 130% and social media users spending over three hours daily online. The transition from social engagement to sales presents a lucrative opportunity, making the social commerce landscape increasingly significant. Following a recent $1.2 million pre-seed funding round, Chpter is enhancing its technology and exploring expansion into markets such as Egypt and Nigeria.
Chpter’s investors recognize the untapped potential in Kenya’s social commerce sector. The funding was led by Pani, an investment firm founded by former Cellulant CEO Ken Njoroge, with participation from several other investment firms and angel investors. Prior to this, Chpter participated in the Norrsken and Safaricom accelerators, benefiting from mentorship and resources to refine its operations.
Startups like Chpter predominantly focus on user acquisition and market expansion, prioritizing growth over immediate profitability. Mbaabu stated, “Yes, we do have plans to raise more funding, but we are prioritizing profitability before seeking the next round of growth capital.” Chpter employs a hybrid revenue model, with businesses paying subscription fees based on their size and additional costs associated with customer interactions.
Chpter’s pricing structure includes monthly fees of $50 for small businesses, $120 for medium businesses, and $550 for enterprises. Revenue is also generated from AI-managed customer interactions and through facilitated messaging on WhatsApp. Mbaabu emphasized, “We have built a self-service platform that allows businesses to register for a free trial, connect their social media accounts, and immediately start benefiting from our technology.”
Chpter is positioning itself as the backbone of social commerce infrastructure. The future success for Chpter will depend on the adoption and effective utilization of its tools by businesses. As platforms like WhatsApp and Instagram evolve into digital storefronts, the focus shifts from whether social commerce will thrive to who will shape the underlying technology driving this trend.
In summary, Kenya’s potential for social commerce is significant, largely facilitated by innovative solutions like Chpter. By automating and enhancing interactions on social platforms, Chpter enables businesses to convert social engagement into actual sales. With robust backing and a commitment to profitability, Chpter is poised to influence the future of e-commerce in Africa and beyond.
Original Source: www.techinafrica.com
