Nigerian fintech startup Risevest has acquired digital trading startup Chaka, after months of conversations between both companies, TechCabal reported on Tuesday.
“We’re excited, especially from the perspective of people; high level and strategically, this deal makes sense,” said Tosin Osinbodu, Chaka’s founder and Eke Urum, the founder of Risevest, confirmed the deal was concluded and approved on Tuesday morning.
“I’m excited about how Chaka’s product will evolve and how we’re going to learn from the Risevest team.”
Chaka and RiseVest will continue to be distinct products, the two startups confirmed to TechCabal, though they declined to comment on the value of the acquisition.
While Chaka’s ownership structure and cap table will change, “everything else remains; the team stays the same,” according to Eke.
Both startups will continue to collaborate and develop their product roadmaps. Deals like these, in Eke’s opinion, are crucial to Nigeria’s tech economy and offer a chance for cooperation
Founded in 2019, Chaka describes itself as an “investment passport” for users and with the Chaka app, users can invest as little as $2 in shares of publicly traded businesses in Nigeria and the US. Additionally, users can purchase fractional shares to lower the barrier to entry for investing.
