A Ugandan Fintech startup, ChapChap, has secured funding from Nordic Impact Funds to help it grows commercially and achieve social impact. The startup generates trustworthy financial profiles for Medium and Small Sized Enterprises (MSMEs).
Led by Lisbeth Stausholm, Nordic Impact funds is an East African focused impact investing firm with offices in Copenhagen and Nairobi. The amount they helped ChapChap to raise remain undisclosed but the Ugandan fintech says it will use the funds for expansion.
Emmanuel Emodek, the co-founder and managing director of the startup, said that the funding will help the firm kickstart the year 2022.
“We are very excited to start out 2022 with this capital injection to accelerate our expansion within and beyond the Ugandan market. We are already servicing more than 20,000 MSMEs in Uganda. This injection is to facilitate digital capacity and financial inclusion for a million customers,” said Emmanuel
Nordic Impact Funds invests in early to mid-stage companies that have proven impact and profitability and are scaling their business model. All investments are made with a gender lens. The firm prefers to be a hands-on partner with the firms it invests in.
“We are extremely proud of this investment. It has a strong focus on small and often women-owned businesses, who can professionalise and expand their businesses thanks to ChapChap,” said Lisbeth Stausholm, the firm’s founder and managing partner.
ChapChap was founded in 2016 by Emmanuel Emodek and James Alituhikya, along with Monica Asiimwe Kiconco, a former primary school teacher, with the goal of empowering small and medium-sized businesses by providing them with digital financial tools and services to help them scale.
The startup uses its Android software to help MSMEs formalize portions of their businesses. The tool allows small businesses to start operating mobile money agencies, track all transactions in the store, and develop a credit profile on the MSMEs.