Risevest Buys 100% Stake in Chaka
By Adedapo Adesanya
Foreign trading and investment firm, Risevest, has acquired Chaka, a digital trading platform.
According to Techcabal, which first broke the news, the deal, which was for an undisclosed sum, will see both entities operate as different products, though the capitalisation table of the acquiree will be updated in due course.
Speaking on this, Mr Tosin Osinbodu, Chaka’s founder, said, “I’m excited about how Chaka’s product will evolve and how we’re going to learn from the Risevest team.”
“With booming growth in many nations around the world, investors can now own a stake in the growth of other economies. Yet, for many Nigerians, this is a daunting task. We created Chaka to fill this gap, and likewise, give the global community access to local capital markets,” added Mr Osinbodu.
Launched in 2019, Chaka provides local investors opportunities to explore international markets and diversify their portfolios into African and global capital markets.
In addition to this, it offers global citizens access to invest in local capital markets with just a click, thus bridging the gap in accessing viable investment vehicles.
The fintech became the first licensed digital sub-broker in Nigeria in 2021. In the same year, Chaka raised $1.5 million pre-seed in a round backed by Breyer Capital, 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures.
Its acquirer, Risevest, was launched in 2020—a year after Chaka, by Mr Eke Urum and Mr Bosun Olanrewaju. The startup focuses on making dollar investments easy for Nigerians. Before its February 2020 launch, it was previously known as Cashestate, an investment service vehicle that allowed Africans to make dollar-denominated real estate investments.
In March 2021, Risevest raised an undisclosed seed round. Prior to that, the company secured a $120,000 seed in July 2020.