Investors Put Substantial Capital Behind Kenya's Expanding Social Commerce Sector
Kenyan Startup Chapter Revolutionizes Social Commerce
Chapter, a Kenyan startup co-founded by Tesh Mbaabu, has developed a platform that automates conversations, marketing, and payments on WhatsApp and Instagram for businesses. This innovative tool empowers small and medium-sized enterprises (SMEs) to convert chats into sales transactions, streamlining customer engagement and sales processes within these popular messaging platforms.
Before securing funding, Chapter joined the Norrsken Accelerator in 2023 and later participated in Safaricom's Spark Accelerator in May 2024. The startup's backers include Pani, Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, Nala CEO Benjamin Fernandes, and Workpay co-founders Paul Kimani and Jackson Kibigo.
Chapter operates on a hybrid revenue model, combining subscription fees, transactional charges, and strategic partnerships. Medium-sized businesses pay a monthly fee of $120, while small businesses pay $50, and enterprises pay $550. As a Meta Business Partner, Chpter facilitates outbound WhatsApp messaging for marketing and operational purposes, generating additional revenue.
The startup positions itself as the infrastructure powering social commerce, with its success depending on how businesses adopt and scale with its tools. With WhatsApp and Instagram increasingly becoming digital storefronts, the question is no longer whether social commerce will grow-but who will control the technology driving it.
In Africa, e-commerce is projected to reach over 500 million shoppers by 2025, and social media platforms like WhatsApp, Instagram, Facebook, and TikTok have become thriving online shopping hubs. Kenya's mobile penetration surpasses 130% and social media users spend an average of over three hours daily, creating a significant potential for social commerce.
Following its $1.2 million pre-seed funding round in September, Chapter has been scaling its technology to deliver more advanced solutions and is eyeing expansion beyond Kenya, with plans to enter key markets like Egypt and Nigeria. The startup's CEO, Tesh Mbaabu, has stated plans to raise more funding in the future, but is prioritizing profitability before seeking the next round of growth capital.
Chpter's unique selling point is its AI-powered sales and support agents, which businesses can leverage to handle customer interactions. The startup does not sell products directly; instead, it provides technology that enables other businesses to sell seamlessly through platforms like WhatsApp and Instagram. This approach empowers businesses to transform social media from a marketing tool into a fully integrated sales channel, offering better engagement than SMS or email and enabling seamless order collection and payments within these social platforms.
Chpter offers a self-service platform for businesses to register for a free trial, connect their social media accounts, and immediately start benefiting from its technology. The startup's vision is to help businesses, particularly SMEs, leverage social media conversations for commerce, thereby accelerating business growth.
Technology plays a crucial role in Chapter's innovative platform, as it automates essential business functions on WhatsApp and Instagram. By leveraging artificial intelligence, Chapter's AI-powered sales and support agents enable businesses to handle customer interactions more efficiently, thereby transforming social media from a marketing tool into a fully integrated sales channel. This technology-driven approach empowers small and medium-sized enterprises (SMEs) to streamline customer engagement and sales processes within these platforms.
