Chipper Cash to Buy Zoona to Expand Cross-Border Payments in Africa

Pan-African cross-border payment app Chipper Cash reportedly intends to acquire Zambian FinTech Zoona Transactions International.

The deal, subject to authorities’ approval, would bring to Chipper Cash new online services, a new agent network and entry to Zambia, TechCabal reported Friday (Nov. 18).

In a Friday post on LinkedIn, Chipper Cash wrote: “In exciting news, today we announced the intended acquisition of the Zoona group, which includes all services under the Tilt Africa brand.”

Chipper Cash did not immediately respond to PYMNTS’ request for comment.

In a statement emailed to PYMNTS, Zoona Co-Founder and CEO Brett Magrath said: “Zoona and Chipper share a vision to provide innovative, trusted and accessible financial services to businesses and customers in Africa. We’re excited for the next phase of the Zoona journey as part of Chipper, working together to bring inclusive financial services products to African markets.”

According to the TechCabal report, Chipper Cash executives said the deal would bring together complementary products and services, allow the two companies to connect consumers and businesses across Africa, and position them as the “first choice provider of financial services” on the continent.

Zoona’s Tilt service has processed over $3 billion worth of transactions since its launch in 2008, according to the report.

Chipper Cash offers fee-free personal and cross-border payment to Africa and is available in Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, Kenya, the United Kingdom and the United States, the report said.

“Bringing these companies together under the Chipper umbrella will mean we can open up even more borders, bringing quality financial services to life in more countries and connecting more people across the continent,” Chipper Cash Vice President of Corporate Development Laura Kennedy said in the report.

The report comes a year after Chipper Cash closed a $150 million Series C extended funding round at a more than $2 billion valuation.

Earlier that year, the startup moved into social payments via a partnership with Twitter, using its Tip Jar-enabled African users to tip directly on the platform. At the time, Chipper Cash had more than 4 million users and said it was on a mission to make transferring money as simple as sending a text message.