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Chipper Cash Implements Layoffs and Salary Reductions

Chipper Cash Implements Layoffs and Salary Reductions (PHOTO: WeeTracker)
Chipper Cash Implements Layoffs and Salary Reductions (PHOTO: WeeTracker)

Chipper Cash, the African fintech, is currently undergoing its fourth round of layoffs, impacting 15 employees in its US operations.

This marks a continuation of a series of job cuts that began six months ago. The recent downsizing has affected employees from various departments, with no roles in Africa being impacted, according to the company.

In a statement to TechCabal, Chipper Cash maintained an optimistic stance on its performance, asserting, “Our business is thriving and is expected to be profitable in a few months.”

The company disclosed that salaries for remaining US and UK employees were reduced, although specific details were not provided.

Founded in 2018 with the goal of digitizing remittance payments in Africa, Chipper Cash operates as a cross-border payments service in eight countries.

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Despite its growth, the company faced challenges, including the departure of its Chief Operating Officer, Alicia Levine, and the elimination of around 40% of its workforce in late 2022.

Financial pressure mounted following the collapse of investors FTX and Silicon Valley Bank, leading to a notable devaluation of the company’s stock options.

The CEO of Chipper Cash, Ham Serunjogi, acknowledged the changes, stating, “The last two years were a period of rapid growth and scaling for us as a business.

The company attributed these changes to a shift in focus towards core markets and products amid a challenging macroeconomic climate.

Notably, Chipper Cash secured $25 million in convertible debt from an undisclosed investor to navigate the difficult fundraising environment.

Despite facing challenges, Chipper Cash has raised over $300 million in venture funding and was valued at $2.2 billion in late 2021.

The company, which boasts over 5 million downloads and partnerships with high-profile figures like Grammy-award-winning musician Burna Boy, expressed resilience amidst the dynamic landscape of digital payments in Africa.

SOURCE: TechCabal

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See also Nigerian B2B E-commerce Startup Alerzo Initiates Second Round of Layoffs

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Written by Ayodeji Ayenuwa

Well, My name is there already, I'm a student of Adekunle Ajasin University, Akungba Akoko, studying Mass Communication: Public Relations and Advertising.

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