Wealthtech startup Risevest has completed the acquisition of digital trading startup Chaka, the founders of both firms have confirmed. Risevest and Chaka will continue to function as distinct products, although the transaction's price was not made public. The two businesses will collaborate in Nigeria's tech environment in order to improve their respective product lines.
Chaka, a firm established in 2019, prides itself as an "investment passport" that enables users to spend as little as $2 on shares of publicly traded firms in Nigeria and the US. Users can purchase fractional shares, which increases accessibility to investing. When the Security and Exchange Commission barred the company in December 2020 for doing business without a licence, the company was faced with regulatory issues. However, Chaka obtained a digital sub-broker license in March 2021 after engaging with the regulator.
The deal between Risevest and Chaka was initiated by a mutual investor who suggested the idea to Risevest’s founder, Eke Urum. Informal discussions began in March 2023, and both founders quickly established a rapport. The investors of both companies were supportive of the deal, recognizing the potential of the collaboration.
In an email sent to investors on its platform on Wednesday, Tosin Osinbodu, Chaka’s founder, noted that the acquisition ”is not just about creating one of Africa’s most promising wealthtech platforms; it's about building something meaningful, lasting, and responsive to your needs. It's about combining two great companies to deliver one fantastic customer experience."
The acquisition is expected to bring new opportunities for both Risevest and Chaka. Chaka’s founder, Tosin Osinbodu, expressed excitement about the future evolution of Chaka’s product and the learning opportunities from the Risevest team.
Overall, this acquisition showcases the growth and potential of the fintech industry in Nigeria, as well as the importance of collaboration in driving innovation and expanding market reach.
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