After Chipper Cash ended 2021 as one among Africa’s most valued fintechs, the FTX-backed startup’s valuation dropped from $2 billion to $1.25 billion after it reportedly obtained a $35 million easy settlement for future fairness (SAFE) grant from the now-collapsed crypto alternate FTX. Chipper Cash has additionally reportedly laid off 50 staff because it seeks to deal with the deteriorated macroeconomic setting.
FTX’s Easy Settlement for Future Fairness
Chipper Cash, one of many a number of African fintech startups to obtain funding from FTX, noticed its valuation drop from $2 billion to $1.25 billion after it secured further funding from the now-collapsed crypto alternate, a Techcrunch report has mentioned. The most recent revelation got here simply as Chipper Cash was reported to have retrenched as many as 50 staff.
As beforehand reported by Bitcoin.com News, Chipper Cash, which was launched in 2018 by Ham Serunjogi and Maijid Moujaled, noticed its valuation rise to over $2 billion after it obtained $150 million in a Collection C extension spherical that was led by FTX in late 2021. Earlier than that, the fintech had raised $100 million through its Collection C spherical.
Nonetheless, in accordance with the Techcrunch report, the drop within the fintech’s valuation stems from the $35 million it obtained from FTX. Chipper Cash wanted the brand new funding, which reportedly got here within the type of a easy settlement for future fairness (SAFE) grant, to assist it cope with a tricky macroeconomic setting, the report added.
Chipper Cash the Newest African Fintech to Lay Off Employees
In the meantime, in what has seemingly change into a customized adopted by fintechs after they lay off staff, Erin Fusaro, the vp of engineering at Chipper Cash, urged tech companies on the lookout for proficient employees to think about hiring her former colleagues.
“This morning [Dec. 5] a significant amount of Chipper staff were let go in a layoff. While I was not among them, many of my close colleagues and friends were. If you’re looking for talented engineering leadership, engineers, technical program managers, analysts, or IT staff,” Fusaro mentioned in a Linkedin post, “please comment here and I’ll do my best to start connecting people.”
Quidax and Nestcoin are two African fintechs to have equally requested their better-positioned trade friends to think about recruiting their former staff.
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