Chipper Cash CEO says exposure to SVB insignificant
Chipper Cash Co-Founder and CEO Ham Serunjogi says the company had only about one million dollars held in its Silicon Valley Bank accounts at the time the bank was taken over by the California regulator. Serunjogi further noted that it is sad to see such a pillar of the startup ecosystem brought to its knees. He joins CNBC Africa to discuss developments in the space.
Wed, 15 Mar 2023 14:53:59 GMT
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AI Generated Summary
- Chipper Cash had limited exposure in SVB accounts, with only about one million dollars held, which was insignificant given the company's global operations.
- The government's quick intervention to guarantee deposits prevented any impact on Chipper Cash and helped restore confidence in the banking industry.
- Serunjogi clarified that SVB Capital's ownership stake in Chipper Cash will not affect the company's financial position, as the funds were received during the Series C fundraising round in 2021.
Chipper Cash, a leading fintech company operating in Africa, faced little impact from the recent collapse of Silicon Valley Bank (SVB), where the company had only about one million dollars held in accounts. This came to light in a recent interview with Chipper Cash Co-Founder and CEO Ham Serunjogi, who discussed the developments in the tech industry following the collapse of SVB and Silver Gate Bank. The collapse of these two banks within days of each other sent shockwaves through the tech ecosystem, creating uncertainty and impacting various sectors. However, Serunjogi assured that Chipper Cash was fortunate to have minimal exposure in SVB accounts, with most of their funds held elsewhere. The company only had about a million dollars in its SVB account, which would have been insignificant given its global operations. Luckily, the government stepped in quickly to guarantee deposits, ensuring that all depositors could access their funds without any impact. This move helped restore confidence in the banking industry and prevented further fallout. Moving forward, Serunjogi addressed the ownership stake SVB Capital holds in Chipper Cash, clarifying that regardless of SVB's status, the investment will not affect Chipper Cash's financial position as the funds were already received during the Series C fundraising round in 2021. Looking ahead, Chipper Cash is focused on expanding its footprint across Africa, with recent acquisitions bolstering its ability to serve businesses and customers more effectively. The company's new offerings, including the Chipper Card and plans to serve more markets like Uganda and Zambia, indicate a strong growth trajectory for 2023. Additionally, Serunjogi expressed optimism about engaging with the new Nigerian government to enhance regulatory frameworks and incentives that support fintech investments and promote financial inclusion. Overall, Chipper Cash remains resilient amidst industry challenges, positioning itself for continued success and innovation in the ever-evolving tech landscape.
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