Nigerian investment platform Chaka secures $ 1.5 million pre-seed after securing country’s first SEC license – TechCrunch

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When Robin Hood raised a $ 3 million funding round in 2013, it was two months ago, with great ambitions to democratize access to titles for the under-served and under-served. I had it. Robin Hood has since swept the world and grown to serve over 30 million users with no-charge transactions...

In the past, we have seen such growth permeate other parts of the world and inspire similar businesses. Robin des Bois is no exception. A few The platform was created to provide equity trading opportunities in their respective markets. In Nigeria, at least four platforms offer domestic and foreign stocks to individuals.. Chaka It is one of those platforms. Today, we announced the end of a $ 1.5 million pre-seed round to boost digital investment for individuals and businesses.

Pre-seeding tower Guided by Breyer Capital, 4DX Ventures, Golden Palm Investments, Future Africa, Seed Stars and Musha Ventures participated. This is the second two-week joint transaction between 4DX Ventures and Breyer Capital. Egyptian social e-commerce platform Taager..

It is a well-known fact that the average American was actively involved in stock trading even before Robin Hood. According to a Gallup study, in 2000, about 60% of Americans owned some form of stock. That number fell to 55% in 2020. This is partly due to the global financial crisis that occurred in 2008.

The crash has also affected Nigerian capital markets. Nigerians lost a lot of money during this period, stock trading mostly Frowns at most people.. But for the average Nigerian to be interested, Participation Trading local stocks is difficult. Virtually impossible for foreigners..

Toshin OshiboduRecognized this problem in the United States, returned to Nigeria and started Chaka Officially We will launch the company in 2019. According to Osibodu, Chaka I wanted Create opportunities for Nigerians to invest in foreign assets, while allowing foreigners to invest in Nigerian assets.

“If there is more demand in the market, it is expected that there will be more supply over time. We expect local capital markets to continue to grow if we move quickly over the long term. “.. “We offer digital access without borders Many Solution, and it is not However About Nigerians investing in the market, it’s about making people accessible to the market Locally And all over the world. “

In most cases, Chaka was executed on one side. Platform Nigerians gain access to over 10,000 stocks and ETFs traded on domestic and foreign capital markets.. The CEO says the platform has leveled the barriers to entry for borderless investments in Nigeria by providing clients with compliant access to capital markets.

“What about the market, is that the market has a supply and a demand with barriers to entry. We are working to reduce these barriers in the local market, by lowering the barriers to investment in the retail trade. This will allow more people to enter the market. In fact, last year more people entered the Nigerian stock market through us than any other broker. It’s like. Supply and demand “Flywheel,” added the CEO.

Chaka’s local property Registered It is affiliated with the Central Securities Clearing System (CSCS) of the Nigerian Stock Exchange (NSE) and is regulated by the Nigerian Stock Exchange Commission (SEC). Assets in dollars, on the other hand, is regulated by US FINRA and US SEC.

Digital investment platform in April this year has been capture In line with the Nigerian SEC.. Regulators have declared their activities illegal and have warned capital market operators working with them to resume intermediary services for foreign securities. Unlike Robin Hood, which offers securities online, it does not offer a Nigerian investment platform. For example, Chaka has partnered with Citi Investment Capital in Nigeria and DriveWealth LLC in the United States to issue stocks and securities...

Ultimately, according to the Nigerian SEC, it was about bringing the activities of these platforms back into that range as part of an effort to protect investors. Osibodu claims Chaka has always been involved in the SEC since the company been trained In 2019 it didn’t look like this in December of last year Regulator Elected A company two years ago that sells and promotes stocks.

The event prioritized large-scale attacks by regulators on other digital investment platforms and gave Chaka ample time. Discuss and draw conclusions In about six months. And last month, Chaka Obtaining the first FinTech license issued by the SEC, Will be the only investment platform that acts as a digital sub-broker.

“When we pitched, we were doing a loop on the SEC. But now, for the past six months, we’ve been working with them to showcase our business models, advantages and markets... Now we are proud to have the first FinTech license from the SEC. We believe that the most important thing is that the market is clear and that we understand the regulations. Obligatory AT Register now.. And we are excited We have clarified what we need to do to innovate and be able to serve the market. “..

The new license allows the company to accelerate Focus on what awaits you. Osibodu says the license expands the scope of what Chaka can achieve. He insists on it Chaka can empower Many In addition to being a digital broker and sub-broker, it provides access to a variety of digital investment products.

In addition to Chaka’s traditional stock trading app for retail investors, it also offers SDK Chaka This allows asset managers and financial institutions to offer digital investments. Chaka for business For integration and direct trading tools for institutional investors.

Jim breyer He commented on Breyer Capital’s investment and said: [and Africans at large].. We are convinced of the value that Chaka offers through digital tools and look forward to playing a role in supporting the mission of the Chaka team to promote investment without borders in Africa. ”

Osibodu says the company will use its pre-seed investment to expand its footsteps in Ghana and other West African markets... Improving technology and services and building partnerships with major financial institutions, including the pinnacle, are also priorities.

“As we progress, Let’s go Something we do However How is he so focused Continuously By reducing barriers to access, we are proud of the initiatives we have launched and are preparing for. Take a look at this space for more partnerships, even with the best agencies in our market.. “

Nigerian investment platform Chaka secures $ 1.5 million pre-seed after securing country’s first SEC license – TechCrunch Nigerian investment platform Chaka secures $ 1.5 million pre-seed after securing country’s first SEC license – TechCrunch

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