Nigerian investment platform Risevest has successfully acquired Chaka, a leading Nigerian fintech company specializing in investment opportunities. This strategic move aims to revolutionize the landscape of investment platforms in Nigeria, offering expanded options for both local and global investments. The acquisition deal, which had been under discussion for several months, was officially concluded on Tuesday, September 26, 2023.
Both companies, Risevest and Chaka, have earned recognition as trusted investment-tech platforms, enabling Nigerians to invest in a diverse range of assets and securities within and beyond Nigeria’s borders. Notably, this acquisition will see updates to Chaka’s cap table, while the company continues to operate independently.
Chaka, founded in 2019 by Tosin Osinbodu, was established with the mission of simplifying the often complex process of Nigerians investing in global and local companies. In 2021, the startup secured $1.5 million in pre-seed funding, further solidifying its position in the market. Chaka’s ambitious plans included expansion into other West African countries.
In the same year, Chaka achieved a significant milestone by becoming the first company in Nigeria to obtain a digital stock trading license. This pivotal achievement allowed Chaka to collaborate with multiple stockbrokers, enhancing its range of services to investors. However, the company faced regulatory challenges from the Nigeria Securities Exchange Commission in 2020, temporarily preventing it from selling or advertising stocks. The subsequent acquisition by Risevest is expected to bring added stability and opportunities for Chaka.
Risevest, on the other hand, was launched in 2019 with the primary goal of connecting Nigerians with dollar-denominated investment options. The platform quickly gained popularity and now boasts over 200,000 Nigerian investors. In 2021, Risevest maintained a robust stock portfolio, with a growth rate of 30.19%, solidifying its position as a leading investment platform in the country.
Both Tosin Osinbodu, the founder of Chaka, and Eke Urum, the founder of Risevest, expressed their satisfaction with the acquisition deal. Importantly, they emphasized that their respective investors fully supported this strategic move, highlighting the immense potential for growth and innovation in Nigeria’s investment sector.
This acquisition is expected to create synergies between Risevest and Chaka, ultimately benefiting Nigerian investors seeking diverse and accessible investment opportunities. As the fintech industry continues to thrive in Nigeria, this partnership could pave the way for more innovative solutions and increased access to global markets.