Chaka raises $1.5 million pre-seed round to power digital investments for businesses across Africa

Investment platform, Chaka has raised a $1.5 million pre-seed round to power digital investments for businesses across Africa.

The round was led by Breyer Capital, a global venture firm focused on catalyzing growth in high-impact companies like Spotify, Facebook, and now, Chaka. Other participants in the round include 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures.

Launched in 2019 by Tosin Osibodu, Chaka enables every business and person in Africa to access borderless digital investment and wealth management opportunities. The platform gives Nigerians access to more than 10,000 stocks and ETFs trading on local and foreign capital markets.

According to TechCrunch, Chaka’s local assets are registered with the Nigerian Stock Exchange (NSE) Central Securities Clearing System (CSCS) and regulated by the Securities and Exchange Commission of Nigeria (SEC). Dollar assets, on the other hand, are regulated by the US FINRA and the US SEC.

Last month, Chaka acquired the first fintech license issued by the SEC, making it the only investment platform operating as a digital sub-broker. With the new license, Chaka can power multiple brokers and provide access to different digital investment offerings in addition to being a digital sub-broker.

Aside from Chaka’s traditional stock trading app for retail investors, it also offers Chaka SDK which allows asset managers and financial institutions to offer digital investments, and Chaka for Business for direct business onboarding and trading tools for institutional investors.

With this funding, the company said it will focus on its goals to build a roster of formidable partners and accelerate its expansion to other markets within West Africa. This investment will also enable the firm to hire top talent and integrate more advanced functionalities into their investment and wealth management solutions.

What they are saying

Jim Breyer, CEO of Breyer Capital said “We are proud to align ourselves with a company that is levelling the investment playing field for Nigerians (and Africans at large). We’re confident in the value Chaka provides through its digital tools, and we look forward to playing our part in supporting Tosin, Bo, Olaolu and the Chaka team.” (Nairametrics)