Chipper Cash, after halting services in America a week ago, has laid off 20 employees from its UK and US branches, TechCabal reported.
In the recent layoff, those affected are at least two executives.
The company’s core team in the US comprises its CEO, Ham Serunjogi, along with his brothers, Nuwa and Tefiro Serunjogi, and co-founder Maijid Moujaled, along with his brother Ryan Moujaled, as reported by an anonymous former employee.
In a recent blog post, Ham Serunjogi announced intentions to shift “a handful” of positions from the US and UK to African markets like South Africa, Ghana, and Nigeria.
Previously, in December, Chipper Cash, backed by Jeff Bezos’s Bezos Expedition, had laid off 15 employees and reduced salaries by 25% for UK and US staff. Despite these measures, the company claimed its business was thriving.
However, recent events contradict this claim, with TechCabal reporting that the company anticipated profitability within three months but fell short, leading to layoffs in the US and UK.
Over the past year, Chipper Cash underwent four rounds of layoffs, affecting notable executives such as Alicia Levine, the Chief Operating Officer, and Leon Kiptum, the country director for Kenya.
Prior to suspending operations in the US, the company advised customers to withdraw funds from their Chipper wallets.
Ham Serunjogi, speaking to The Information, downplayed the impact of the suspension, citing it as minimal.
The recent layoffs signify Chipper Cash’s refocused efforts on its African operations, particularly in Nigeria, Ghana, Uganda, and Rwanda.
Despite once being valued at over $2 billion and securing substantial funding between 2019 and 2021 from investors like Deciens Capital, Ribbit Group, FTX, and Silver Valley Bank, Chipper Cash encountered financial challenges amid a slowing global economy and diminishing venture capital funding.
Reports indicate a monthly burn rate of $7 million, potentially reaching its peak after the Series C funding round in May 2021.
