Chaka, a Nigerian Digital Sub-broker that offers both local and foreign stocks to individuals, has announced the closing of its $1.5m pre-seed round.
According to a statement, the company said that this funding will serve as a catalyst in its bid to continue to enable borderless investments across Africa and deliver digital investments solutions for African businesses.
It also said it will be used towards the expansion of the Fintech’s footprints in West Africa to reach more retail investors and attract more foreign players to African Capital Markets.
It said the pre-seed round was led by Breyer Capital, while 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures.
Commenting on the funding secured, Tosin Osibodu, Co-founder and Chief Executive Officer, Tosin Osibodu, Chaka Technologies said, “This is indeed a significant milestone for us at Chaka. We see digital investments as an opportunity to boost economic transformation in Africa, and our goal is to use this funding to bring this vision to life.
“With this capital, we will focus on our goals to build a roster of formidable partners and accelerate our expansion to other markets within Africa. This investment also enables us to hire top talent and integrate more advanced functionalities into our investment and wealth management solutions for businesses.
“Our mission remains the same and we are excited to be backed by VCs like Breyer Capital that trust us and are extremely optimistic of the possibilities that exist for Chaka and Africa.”
Also speaking on the funding, CEO of Breyer Capital, Jim Breyer said, “We are proud to combine efforts 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 Chaka’s team on their mission to drive borderless investments in Africa.”
In April 2021, the Securities Exchange Commission declared digital investment platforms illegal and warned capital market operators working with them to renege on providing brokerage services for foreign securities.
SEC said it wanted to bring the activities of the platforms under its purview as part of its efforts to safeguard the investing public.
Last month, Chaka got the first fintech licence issued by the SEC, making it the only investment platform operating as a digital sub-broker.
According to a report on TechCrunch, Chaka gives Nigerians access to more than 10,000 stocks and exchange-traded funds on local and foreign capital markets.
Osibodu was quoted as saying, “When we launched, we kept SEC in the loop. But now, over the last six months, we’ve engaged with them, showed them our business models, the benefits, and the markets. Now, we’re proud to have SEC’s first fintech licence.
“We believe that the most important thing is that the market has clarity and understands the regulations required to be registered. And we’re thrilled to have broken new ground and cleared up what it takes to be able to offer services in the market.”