Chpter aims to leverage Kenya’s social commerce potential by automating sales processes on platforms like WhatsApp and Instagram. Following significant investment, it plans to expand into new markets while focusing on user acquisition and profitability. The startup operates on a hybrid revenue model, charging subscription fees and transactional costs to businesses utilizing its technology.
Social commerce is increasingly popular among micro, small, and medium-sized enterprises (MSMEs) in Kenya; however, the country has not yet fully harnessed its potential. Millions of Kenyans are active on social media, prompting businesses to utilize platforms to reach customers. A significant issue for e-commerce is cart abandonment when users are redirected away from social platforms. Consumers prefer shopping within their social feeds, creating opportunities for MSMEs to convert social engagement into sales directly on these platforms.
Chpter, co-founded by Tesh Mbaabu, focuses on this trend by automating conversations, marketing, and payments through WhatsApp and Instagram. Rather than selling products directly, Chpter provides technology that enables seamless sales for other businesses through these platforms. It facilitates order processing, payment management, and customer interactions without functioning as a marketplace itself.
Mbaabu states, “In Africa, e-commerce is projected to reach over 500 million shoppers by 2025. Social media is transforming into a robust online shopping landscape, significantly impacting buying and selling dynamics.” With over 130% mobile penetration in Kenya and users spending over three hours on social media daily, the potential for social commerce is vast, evolving from concept to an active market.
Following a recent $1.2 million pre-seed funding round, Chpter is scaling technology to enhance its solutions and plans to expand into markets like Egypt and Nigeria. Investors see significant potential in Kenya’s social commerce sector, with the funding round led by Pani, an investment firm co-founded by Ken Njoroge. Additional backing includes Plesion Capital, Techstars, and various angel investors.
Prior to the funding, Chpter participated in the Norrsken Accelerator and received mentorship from Safaricom’s Spark Accelerator, enhancing its operational capabilities. Chpter aims for user acquisition and growth before seeking profitability, with CEO Mbaabu stating, “Yes, we do have plans to raise more funding, but we are prioritizing profitability first.”
Chpter employs a hybrid revenue model based on subscription fees and transactional charges. Pricing is tiered: $50 for small businesses, $120 for medium businesses, and $550 for enterprises. Revenue is also generated through AI-powered interactions processed on the platform and as a Meta Business Partner facilitating outbound WhatsApp messaging.
Chpter offers a self-service platform that allows businesses to register for a free trial and connect social media accounts to leverage their technology immediately. Positioned as a foundational element of social commerce, Chpter’s long-term success relies on the adoption and scalable use of its tools by businesses, marking a notable shift in how commerce is executed online.
Chpter is positioning itself as a key player in Kenya’s social commerce market by providing essential technology that enables businesses to conduct sales through popular social media platforms. With substantial investor backing and strategic plans for expansion, it seeks to transform social engagement into tangible sales, reflecting the growing trend of integrating commerce with social media. As the landscape evolves, Chpter’s success will hinge on its ability to drive widespread adoption of its solutions.
Original Source: www.techinafrica.com
