Nigerian fintech startup Chaka has raised $1.5 million in a pre-seed investment round led by Breyer Capital, an investment firm floated by Silicon Valley venture capital firm Accel’s veteran Jim Breyer.
Breyer had led early-stage investments in companies like Facebook, Spotify and Etsy.
Other investors in the round include Future Africa, Golden Palm Investments, Seedstars, Musha Ventures and 4DX Ventures.
Chaka was founded two years ago by Tosin Osibodu. It enables digital borderless investing for African businesses and individuals. Osibodu had previously worked at AppNexus, GUMCO and CitiServe, and had also floated an ethnic grocery ecommerce venture in the US called Diastora.
With this capital, Chaka intends to add more partnerships and accelerate expansion to other markets within West Africa. The investment will also enable Chaka to hire people and integrate more functionalities into its investment and wealth management solutions.
This funding comes soon after Chaka announced it had been granted registration and licensed by the Nigerian Securities and Exchange Commission as a sub-broker serving multiple brokers through a digital platform.
However, this victory came after a serious roadblock a few months ago. Last December, the Investments and Securities Tribunal (IST) of the Nigerian SEC had barred Chaka from advertising or offering for sale shares, stock or other securities of companies or other entities.
The regulator had raised the red flag that Chaka was allowing investments in foreign companies such as Google, Amazon and Alibaba even though it was outside its regulatory purview.
There are a few other digital investment fintechs in Nigeria including Rise and Trove.