Chpter: Transforming Kenya’s Social Commerce Landscape Through Innovative Technology

Chpter is revolutionizing Kenya’s social commerce market by automating payment and marketing processes on platforms like WhatsApp and Instagram. With a focus on addressing cart abandonment, Chpter empowers businesses to convert social media engagement into transactions. Backed by a $1.2 million funding round, the startup aims for expansion into key African markets, utilizing a hybrid revenue model based on subscriptions and transactions.

The social commerce sector in Kenya is witnessing growth, yet micro, small, and medium-sized enterprises (MSMEs) have not fully leveraged its potential. With millions of active social media users, many businesses are adopting social commerce to engage customers more effectively. There is a significant issue with cart abandonment when customers are redirected from social platforms, prompting the need for a more integrated shopping experience within these environments.

Chpter, co-founded by Tesh Mbaabu, aims to address this challenge by automating marketing and payment processes on platforms such as WhatsApp and Instagram. Rather than selling products directly, Chpter provides technology that enables other businesses to utilize social media for seamless transactions, effectively serving as a facilitator of commerce between businesses and customers.

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.” Chpter empowers businesses to transition from marketing on social media to integrating sales channels, enabling efficient payment processing linked to customer interactions.

Mobile penetration in Kenya exceeds 130%, with social media users averaging over three hours daily on these platforms. Consequently, the potential for social commerce in Kenya is vast, fostering a rapidly expanding marketplace. Chpter’s recent $1.2 million pre-seed funding round is aimed at enhancing its technology and expanding into new markets including Egypt and Nigeria.

Top investors in Chpter include Pani, co-founded by Ken Njoroge, alongside others such as Plesion Capital, Techstars, and several notable angel investors. The startup has benefitted from participation in accelerators such as the Norrsken Accelerator and Safaricom’s Spark Accelerator, which provided essential training and mentorship.

Chpter’s operational model focuses on market expansion and user acquisition while aiming for 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.” The company employs a hybrid revenue model combining subscription fees and transactional charges.

Businesses using Chpter’s platform pay fees based on size, with categories including small ($50), medium ($120), and enterprise ($550). Additionally, the platform generates revenue from customer interactions via its AI-powered agents, and as a Meta Business Partner, it facilitates outbound WhatsApp messaging for marketing.

Chpter has created a self-service platform for business registration, allowing companies to connect their social media accounts for immediate access to their technology. Ultimately, Chpter positions itself as the central technology provider for social commerce, with its future success hinging on businesses’ adoption and integration of its solutions. The future of social commerce development will depend on technological advancements and market navigation.

Chpter is at the forefront of transforming Kenya’s social commerce landscape by enabling businesses to leverage social media for sales effectively. With significant investment backing and a robust technology offering, Chpter is well-positioned to expand its reach. The startup’s success largely hinges on its ability to facilitate seamless commerce and the increasing adoption of its platform by businesses looking to capitalize on the growing social commerce market.

Original Source: www.techinafrica.com