When American investment platform, Robinhood, launched back in 2013, its goal was to democratize securities access to the underserved and unserved. Robinhood has been successful, to say the least. It serves more than 30 million users and offers zero-commission trading. Its success, however, inspired the creation of similar platforms in other parts of the world, making it possible for individuals to trade stocks and other securities in their location.
In Nigeria, for instance, there are about four platforms offering Nigerians the opportunity to trade both local and foreign stocks. Chaka is one such platform. And the startup has just raised $1.5 million in Pre-seed funding to power digital investments for individuals and businesses in Nigeria. This funding round was led by Breyer Capital. 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures also participated.
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What Is Chaka?
Chaka was founded in 2019 by Tosin Osibodu, and just like Robinhood, Chaka is a Nigerian startup democratizing access securities. With Chaka, Nigerians have access to over 4,000 assets and indexes listed in more than 40 countries including Nigeria and the United States.
The startup was in the news weeks ago after Nigeria’s Securities and Exchange Commission (SEC) issued a new license to the startup for digital stock trading. Chaka became the first stocks trading platform in Nigeria to be issued with this license. According to Tosin Osibodu, the license from SEC will expand the scope of what Chaka can achieve. Adding that Chaka can power multiple brokers and provide access to different digital investment offerings in addition to being a digital sub-broker.
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Chaka says it plans to use its latest round of funding to expand into other markets including Ghana, Improve its technology and services, as well as secure partnerships with major financial institutions, including apex institutions.
