Chpter Revolutionizes Kenya’s Social Commerce Landscape

Chpter, a Kenyan startup, enhances social commerce for micro and small enterprises by automating marketing and payments on platforms like WhatsApp and Instagram. By addressing cart abandonment, Chpter enables seamless transactions within social media. Following a successful pre-seed funding round, the company aims to scale and expand into new markets. Its unique revenue model and focus on technology position it as a leader in Kenya’s growing social commerce sector.

Chpter, a Kenyan startup co-founded by Tesh Mbaabu, is tapping into the burgeoning social commerce market, which remains underutilized by micro, small, and medium-sized enterprises (MSMEs) in the region. Millions of Kenyans utilize social media for engagement, presenting businesses a unique opportunity to facilitate purchases directly within these platforms. The traditional challenge of cart abandonment, when users are redirected away from their preferred social sites, is circumvented through this approach, allowing immediate transactions.

Chpter assists businesses by automating customer interactions, marketing, and payment processes on platforms such as WhatsApp and Instagram. Rather than selling products directly, Chpter provides the technological framework for MSMEs to leverage social media for sales, handling order management and payment processes without operating as a marketplace. Mbaabu articulated the potential in Africa, stating, “In Africa, e-commerce is projected to reach over 500 million shoppers by 2025.”

Through its platform, Chpter enables companies to convert social media into a functional sales channel rather than solely a marketing tool. The technology allows businesses to execute WhatsApp marketing campaigns with superior engagement metrics compared to traditional SMS or email, while also managing seamless order and payment collection.

As mobile penetration in Kenya exceeds 130% and users spend extensive time on social media, Chpter foresees a significant market opportunity. Following its recent pre-seed funding of $1.2 million, Chpter aims to scale its services and plans to expand into markets including Egypt and Nigeria.

The recent funding round was led by Pani, with support from notable investors and firms such as Techstars, Renew Capital, and angel investors including Nala CEO Benjamin Fernandes. Chpter previously participated in accelerators, enhancing its operational capabilities for growth.

Chpter operates on a hybrid revenue model, with businesses paying a subscription fee based on their size—ranging from $50 for small businesses to $550 for enterprises—alongside revenues generated from AI-powered customer interactions. As a Meta Business Partner, Chpter enables businesses to send marketing messages through WhatsApp, contributing to its revenue stream.

Chpter’s platform supports businesses in registering for free trials, facilitating immediate integration with social media accounts. Positioned as the backbone of social commerce, the startup’s long-term success will depend on the market’s adoption of its tools and technologies.

Overall, Chpter represents a significant shift in how Kenyan businesses can engage with customers through social platforms, enabling smooth transactions and enhancing the shopping experience. Its successful integration of technology into social commerce may redefine retail practices in the region, with future expansions promising further growth. Investors recognize the potential of Chpter’s model as e-commerce continues to evolve in Africa.

Original Source: www.techinafrica.com