Africa-focused fintech unicorn, Chipper Cash, has reportedly laid off 15 employees in its fourth round of layoffs within a year.
The latest job cuts come six months after the removal of nearly a dozen roles, including the Chief Operating Officer. Primarily affecting the US team, the layoffs coincide with the reduction of salaries for remaining US and UK Chipper Cash employees.
Chipper Cash, which specialised in cross-border payments and recently entered the grocery industry, confirmed the layoffs, asserting that despite the challenges, its business is “doing very well” and is expected to be profitable in the coming months.
The company, founded in 2018, operates across eight countries, offering services such as zero-fee peer-to-peer transactions, global fund transfers, and assisting merchants with online payments. It also allows users in Nigeria and Uganda to trade cryptocurrency and buy fractional stocks in US-listed companies.
Despite raising over $300 million in funding and reporting significant growth with over 5 million downloads, Chipper Cash’s recent moves, including organisational restructuring and market focus adjustment, reflect challenges faced by fintech companies amid economic uncertainties and increased competition.
After doubling its workforce to 450 between 2021 and 2022, Chipper Cash’s growth has faced headwinds due to rising interest rates, the urgency to conserve costs, and competition from other fintech players. Earlier job cuts and leadership departures signal the company’s strategic shift towards core markets and products.
Financial challenges exacerbated by the collapse of prominent investors have prompted Chipper Cash to raise $25 million in convertible debt, signalling efforts to conserve cash and extend its runway in a challenging fundraising environment.