Chipper Cash lays off 15 employees in fourth layoff round

Chipper Cash, the African fintech unicorn, has carried out another round of layoffs, with 15 employees across various departments losing their roles. This marks the fourth round of layoffs within a year, primarily impacting the company’s US team.

The recent job cuts follow the elimination of nearly a dozen positions, including the Chief Operating Officer, Alicia Levine, six months ago.

Chipper Cash confirmed the layoffs to TechCabal. Still, it maintained an optimistic stance on its performance, stating, “Our business is doing very well and will be profitable in a few months.”

The company also emphasised its commitment to operational efficiency through minor restructuring, with a spokesperson noting, “No roles in Africa were affected.”

In addition to the layoffs, Chipper Cash reduced the salaries of its remaining US and UK employees, according to sources connected to the company. However, the company did not provide more context for its salary adjustments.

Read also: Chipper Cash CEO, Ham Serunjogi and 2 Nigerian Americans appointed to Joe Biden’s Advisory Council

What you should know about Chipper Cash

Founded in 2018 by Ham Serunjogi and Maijid Moujaled, Chipper Cash aimed to digitize remittance payments into Africa. Operating as a cross-border payments service, the company facilitates transactions between eight countries, including Nigeria, South Africa, the UK, and the US, positioning itself as a zero-fee payment platform for peer-to-peer transactions.

Despite its exponential growth, Chipper Cash faced challenges. In late 2022, the company laid off around 180 employees, representing 40% of its workforce, followed by the departure of several senior leadership members. These included its chief operating officer, chief information officer, chief revenue officer, global head of marketing, and its chief compliance officer.

The company attributed these changes to a shift in focus towards core markets and products amid a challenging macroeconomic climate.

“The last two years were a period of rapid growth and scaling for us as a business and, to reflect this, our global headcount grew by around 250 people. However, given the macroeconomic climate, we are narrowing our current focus to core markets and products.”

Chipper Cash CEO Ham Serunjogi in February after the second round of job cuts.

Financially, Chipper Cash experienced pressure following the collapse of two prominent investors, FTX and Silicon Valley Bank, which resulted in a marked reduction in the company’s valuation. Reports suggested a devaluation of employee stock options by up to 70%.

According to a Bloomberg report, the situation was followed by alleged reports that the fintech company backed by Silicon Valley Bank and cryptocurrency exchange FTX, was weighing its options, including exploring a sale or seeking new investors.

However, in response to the difficult fundraising environment, Chipper Cash reportedly secured $25 million in convertible debt from an undisclosed investor, aiming to conserve cash and extend its financial runway.

Since it launched, Chipper Cash has raised over $300 million in venture funding across multiple rounds that originally valued it at $2.2 billion in late 2021. Some of its prominent investors include fintech investor Ribbit Capital; Bezos Expeditions, the venture fund of Amazon founder Jeff Bezos; Silicon Valley Bank; and FTX, the failed crypto exchange.

Recently, its CEO, Ham Serunjogi, was among the 12 Africans that United States President, Joe Biden selected to join his Advisory Council on African Diaspora Engagement. Serunjogi was selected alongside eleven others which also include two Nigerian-Americans; Osagie Imasogie and Chinenye Joy Ogwumike.

A White House statement disclosed that the Chipper Cash CEO is one of the inaugural 12 members of the Council. This Council was established as a significant commitment announced by Vice President Kamala Harris, on behalf of the Biden-Harris Administration during the 2022 U.S.-Africa Leaders Summit. The council’s goal is to promote dialogue between U.S. officials and the African Diaspora.