Nigerian Fintech company Risevest has acquired Chaka, a digital trading platform, for an undisclosed amount. After months of negotiation, both companies confirmed the acquisition deal was concluded and approved on Tuesday, 26th September 2023.
Founded in 2019, Chaka is a digital platform that offers opportunities for Nigerians to explore international markets and diversify their portfolios into African and global capital markets. For instance, with the Chaka app, users can buy shares of publicly traded companies in Nigeria and the United States for as low as $2.
On the other hand, founded by Eke Urum and Bosun Olanrewaju, Risevest began its operations in 2014. The startup focuses on making dollar investments easy for Nigerians.
As both companies share a common investment niche, the acquisition of Chaka will aim to collaborate on both company's infrastructures to improve their products. According to Eke Urum, Risevest's co-founder, both companies will continue to operate as different products, but the capitalisation table of the acquiree will be updated. Hence, Risevest, using Chaka, will look to create a formidable team that will improve its presence and operations in the investment technology ecosystem.
Affirming this foresight, Tosin Osinbodu, Chaka's founder, in a statement said,
"We're excited, especially from the perspective of people; high level and strategically, this deal makes sense. I'm excited about how Chaka's product will evolve and how we're going to learn from the Risevest team."
Moving forward, Risevest and Chaka will hope to achieve the strategic objective of this deal while maintaining a healthy synergy between both products.