What you need to know:
Chap Chap, a fintech platform that enables MSMEs to access financial services at competitive prices, has successfully closed an undisclosed round of equity investment from Nordic Impact Fund.
The investment came as Chap Chap completed the four-month JICA (Japan International Cooperation Agency) NINJA (Next Innovation with Japan) acceleration program in Uganda. The program included an $18,000.00 fund from JICA for proof of concept - to scale Chap Chap’s business.
JICA NINJA is an initiative by JICA designed to support entrepreneurs and startups in developing countries who are creating innovative business models and technologies to solve social issues.
“We are very excited to start 2022 with this capital injection to accelerate our expansion within and beyond the Ugandan market”, says Emodek. “We are grateful for the JICA NINJA program that supported us in validating our business in front of investors, both through training and by funding the proof of concept exercises that allowed us to upgrade our platform.”
Already serving over 20,000 MSMEs in Uganda, Chap Chap co-founder and managing director Emmanuel Emodek believes that this injection will help scale digital capacity and facilitate financial inclusion for a million customers.
Chap Chap uses its Android software to help MSMEs formalize portions of their businesses. The tool allows small businesses to start operating mobile money agencies, track all financial transaction, and develop a credit profile.
Regarding the JICA NINJA accelerator program, Koichiro Yamamoto, JICA Uganda Representative says,
“The JICA NINJA program was designed to get start-ups to an investment ready stage leading to funding that would accelerate growth. The fact that Chap Chap got investment is a concrete result. I would like to commend Chap Chap and the hubs that supported them”.
The NINJA program in Uganda was run by a consortium of the country’s leading hubs - Hive Colab, Outbox and the Innovation Village - supported by a Japanese taskforce that included Asia Africa Investment and Consulting Ltd. (AAIC), Rakuten Europe, and more.
Shigeru Handa, Director at AAIC, remarked, “Supporting growth and scalability of Uganda startups is much needed. We are committed to support this space in collaboration with Ugandan hubs and ecosystem players”.
“As JICA Taskforce, we will also continue to come alongside Chap Chap, providing consulting and advisory services to help them scale.”, says Jun Shiomitsu, president of AVODA Group.