Friday, April 26, 2024

Cash Chipper considers sell-off after exposure to FTX, Silicon Valley Bank collapse

“It’s been fairly common practice for us to receive various M&A proposals from different parties, which we evaluate to varying degrees.”

• March 15, 2023
Chipper and Silicon Valley Bank
Chipper and Silicon Valley Bank

Following the collapse of Silicon Valley Bank, Chipper Cash, an Africa-focused fintech business sponsored by Silicon Valley Bank and bitcoin exchange FTX, is considering selling its assets while simultaneously looking for new investors.

Bloomberg cited sources familiar with the situation as saying that the corporation started exploring its options before the Silicon Valley Bank’s collapse. The sources asked to remain anonymous because the discussions are confidential. They noted that the business could choose not to pursue either option, and no final decisions have been made.

Responding to queries on the development, the organisation debunked claims that it was looking to sell off. 

“It’s been fairly common practice for us to receive various M&A proposals from different parties, which we evaluate to varying degrees, that being said, we have never sought to be acquired,” the organisation said.

Chipper Cash, valued at around $2 billion at the time, secured $250 million in a round led by Silicon Valley Bank and the now-defunct FTX in 2021, with Silicon Valley Bank owning two per cent of the company’s stake.

Before its collapse, Silicon Valley Bank offered banking services to a sizable number of African IT businesses, many of which are dependent on U.S. financial institutions and would be difficult to replace right away.

However, Chipper Cash stated on Sunday that the Silicon Valley Bank collapse would not influence its operations for customers worldwide. It added that it has numerous banking partnerships in the U.S. and a wide range of investors supporting its long-term business goal.

“While this is a very worrying time for so many tech firms, the impact of SVB’s collapse on Chipper is insignificant,” a statement by Chipper Cash said.

Peoples Gazette had earlier reported the U.S. government’s takeover of Silicon Valley Bank after it collapsed.

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