Nigerian fintech startup Risevest has sealed the deal and officially acquired Chaka, a digital trading startup.
The founders of both startups Eke Urum , founder of Risevest and Tosin Osinbodu, founder of Chaka confirmed the deal on Tuesday morning.
“We’re excited, especially from the perspective of people; high level and strategically, this deal makes sense,” said Osinbodu. “I’m excited about how Chaka’s product will evolve and how we’re going to learn from the Risevest team.” he added.
According to the founders, Chaka and Risevest will remain separate products, and their teams remain the same.
”Both companies will continue to work on their product roadmaps and collaborate to improve products. ”
Urum believes that “deals like this are essential to Nigeria’s tech ecosystem and present an opportunity for collaboration.”
Founded in 2019, the Chaka app enables users to buy shares of publicly traded companies in Nigeria and the United States for as little as $2.
Users can also buy fractional shares, reducing the cost of entry to investing.
Chaka became the first trading startup to receive a digital sub-broker licence in March 2021, following an existential threatening situation in 2020.
The Security and Exchanges Commission (SEC) had banned the company from operating and advertising to customers in Nigeria.
Speaking on how the deal happened, Urum said, “The first conversation we had about this was, this is where Chaka is trying to go; I wonder if this could happen.”
Investors on both sides have also always been aware.
“To my knowledge, all investors bought in when we spoke to them about this deal,” he adds.
The companies began Informal talks in March 2023 and concluded deal was concluded in September2024.
“Knowing how much we have put in, the investors understand that we’re committed to it. I think the investors are really glad about this outcome and what the future holds,” Osinbodu concluded.