Chipper Cash Unaffected by SVB Shutdown: CEO Lays Out the Facts

The past week has been a challenging one for the US technology and startup community, with both Silvergate Bank and Silicon Valley Bank (SVB) being shut down within a few days of each other. However, Chipper Cash, a fintech startup that enables people in Africa to move and interact with their money freely, has fortunately had overall insignificant exposure to both these events, according to its CEO, Ham Serunjogi.

In a statement, Serunjogi said that Chipper Cash maintains multiple banking relationships across the world, including multiple within the United States. As such, the company had a very limited amount of money ($1 million) held in its SVB account at the time the bank was taken over by the California regulator.

Chipper Cash has already received confirmation from the FDIC that it can expect about half the funds back by Monday, March 13th, 2023. Furthermore, there was absolutely no impact on the company's customer operations around the world.

SVB was one of Chipper Cash's many investors and led its Series C round in 2021. SVB has been the most important banking partner to the entire Silicon Valley ecosystem, and for Chipper Cash, it has been an incredible partner as an investor.

Serunjogi said that when he was trying to open Chipper's first bank account five years ago, SVB was the only bank that would accept them. Therefore, it is quite sad to see such a pillar of our ecosystem brought to its knees.

However, from a financial perspective, SVB being an investor does not really change anything. SVB made its investment in Chipper in 2021 and the company received those funds as soon as that round closed. What is happening now doesn't change that.

Additionally, SVB wasn't the only investor in that round - Chipper Cash had several other new and existing investors participate in the $100 million round and SVB owns a very small part of the company (2%).

Serunjogi emphasized that every business is having to make difficult but necessary adjustments in these uncertain times, and Chipper Cash is no exception.

However, he expressed confidence that the company will continue working hard every day towards its mission, even in the face of challenges. He also reminded everyone that this is a marathon, not a sprint and that there is so much more to be done.

FAQs

Does Chipper Cash work in Nigeria?

Chipper Cash is a legal money transfer app offered in Ghana, Nigeria, Kenya, Uganda, Tanzania, Rwanda, and South Africa. With Chipper cash, you may also transfer money from the United Kingdom to the listed African nations.

How does Chipper Cash work?

Chipper Cash is a global method of sending and receiving money. Customers may take advantage of free transfers and the best cross-border rates. More money remains in the purses of users, and more comes. Users may safely link any mobile money or bank account and cash in and out for free.

Which bank does Chipper Cash use?

It is a virtual bank account number that is linked to your Chipper wallet. This feature was developed in partnership with our Nigerian bank partner, Wema Bank, and Flutterwave.

Does Chipper Cash use BVN?

Chipper Cash utilizes your BVN to confirm your account numbers, ensuring that your withdrawals are smooth, safe, and quick.

Is Chipper approved by CBN?

Chipper Cash is one of the Financial Technology companies that the Central Bank of Nigeria has authorized to use technology to deliver financial services in Nigeria in compliance with the CBN's National Financial Inclusion Plan. It has a Mobile Money Operator license.