Chaka, a Nigerian fintech platform that focuses on investment and wealth management, has announced recently that it has received the first fintech license that has been issued by the SEC.
This is a huge leap forward for the company that aims to enable every person to access digital investments and wealth management opportunities. It has also recently raised $1.5 million in pre-seed funding led by Breyer Capital and other investors including Future Africa, 4DX Ventures, and others. This platform gives access to over 10,000 stocks and ETFs for Nigerians and these are from both local and international markets as well.
The company is regulated by the Securities and Exchange Commission of Nigeria while the dollar assets are regulated by FINRA and SEC from the US as well. The company has been gaining a lot of attention from users and investors of late and this is in line with the growth in interest of fintech startups in Africa and Nigeria in particular.
The Nigerian startup Esusu has recently raised $10 million in Serie A funding which was led by Motley Fool Ventures and one of the investors included the tennis star, Serena Williams. The startup does rent-reporting which is useful for building a credit score for those who do not have it. This data is then relayed to the credit bureau and this helps such people to be able to build up a credit history, something that they would normally not have. The fintech also proposes to build some more solutions that would help to solve problems faced by the underserved population.
The fintech proposes to use these funds for building more features and upgrades into the platform and would also look to grow and expand as well. Again, the fact that the company has been gaining attention in Nigeria is something that has not been dismissed by the investors who are now looking into Africa as a serious investment destination as the markets in Europe and Asia get matured. Africa and South America are likely to provide the big investors and the companies with the next massive growth which is the reason why we are seeing the investments beginning to rise in the region. This is expected to continue in the long term as well as the space for growth in these regions is also very high and regulatory oversight and control is very much less which helps the companies to innovate and grow.