Capital Backers Wager Large Sums on Kenya's Expanding Social Commerce Sector
In Kenya, the landscape of small and medium-sized enterprises (SMEs) is undergoing a significant transformation, as businesses increasingly adopt social media platforms for e-commerce purposes. This shift, driven by mobile technology, social platforms, and supportive fintech infrastructure, is positioning Kenyan businesses strongly in the digital marketplace [1][2][3].
Social commerce in Kenya leverages the widespread mobile phone usage, high mobile money penetration, and smartphone adoption to offer a seamless, engaging shopping experience entirely within social apps. By removing friction from the buying process through shoppable posts, live sessions, and instant customer engagement, SMEs are building trust and loyalty with their customers [1].
One company at the forefront of this growth is Chpter, a startup that has developed a platform that automates conversations, marketing, and payments on WhatsApp and Instagram for businesses. Chpter empowers businesses to transform social media into a fully integrated sales channel, without selling products directly. Instead, the company provides technology that enables other businesses to sell seamlessly through these platforms [1].
Chpter's CEO, Tesh Mbaabu, has stated plans to prioritize profitability before seeking the next round of growth capital. The company has already secured $1.2 million in pre-seed funding and is planning to expand beyond Kenya into key markets like Egypt and Nigeria [4]. Chpter's backers see significant untapped potential in Kenya's growing social commerce sector.
The current state of social commerce in Kenya is rapidly growing and presents a valuable opportunity for SMEs. While challenges such as cart abandonment remain, the shift in e-commerce towards allowing customers to complete purchases within their social media experience offers a potential solution [1][5].
As the digital commerce ecosystem in Kenya continues to stabilize and grow, companies like Chpter will play a key role in enabling SMEs to harness this opportunity for rapid e-commerce growth. By providing solutions that empower SMEs to sell directly on social platforms, measure performance consistently, and optimize customer interactions, Chpter supports the expansion and maturity of social commerce in the Kenyan market [1].
References:
[1] Chpter. (n.d.). About Us. Retrieved from https://www.chpter.co/about
[2] World Bank. (2020). Kenya Mobile Cellular Subscriptions. Retrieved from https://data.worldbank.org/indicator/IT.CEL.SUB.QU?locations=KE
[3] TechCrunch. (2020). Kenyan fintech startups raised $214 million in 2019. Retrieved from https://techcrunch.com/2020/02/05/kenyan-fintech-startups-raised-214-million-in-2019/
[4] TechCabal. (2021). Chpter raises $1.2M pre-seed to help African businesses sell on WhatsApp and Instagram. Retrieved from https://techcabal.com/2021/03/17/chpter-raises-1-2m-pre-seed-to-help-african-businesses-sell-on-whatsapp-and-instagram/
[5] Business Daily Africa. (2020). Cart abandonment: The e-commerce challenge in East Africa. Retrieved from https://www.businessdailyafrica.com/analysis/cart-abandonment-the-e-commerce-challenge-in-east-africa/4614300-4884496/
Technology, such as the platform developed by Chpter, is transforming social commerce in Kenya by automating conversations, marketing, and payments on WhatsApp and Instagram for businesses. This innovative technology empowers SMEs to turn social media into a fully integrated sales channel without selling products directly.
