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Chpter, an AI-powered conversational commerce startup, has secured $1.2 million in pre-seed funding to enhance product visibility and marketing capabilities for its clients. Founded in 2022, Chpter helps e-commerce merchants boost sales by automating marketing conversations on platforms like WhatsApp and Instagram. The funding round was led by Ken Njoroge of PANI, with additional investments from Plesion Capital, Techstars, and others. 

“At Pani we’re always on the look out for founder teams with incredible grit- they embody the relentless passion and fight needed to build in Africa. When we find such founders, we walk with them & invest in them,” Ken Njoroge said.

Chpter aims to enhance the online shopping experience by leveraging social networks to reduce revenue loss from abandoned carts, which can account for up to 40% of e-commerce losses. Founded by Mesongo Sibuti, Kuria Kevin, Mark Kiarie, and Tesh Mbaabu, Chpter plans to use its newly raised funds to further develop its AI-powered platform. The founders are confident that their solution will play a key role in the projected growth of Africa’s e-commerce sector, which is expected to reach $46 billion and 500 million shoppers by 2025.

“We are thrilled to pioneer the social commerce revolution, starting in Africa, as more and more consumers turn to social channels such as WhatsApp, Instagram, Facebook, and TikTok to communicate and purchase from the brands they love,” said CEO and co-founder of Chpter, Tesh Mbaabu.

With billions of users worldwide, conversational messaging platforms like WhatsApp are vital for e-commerce businesses. Tools that enhance a company’s ability to market products and maintain customer relationships through these platforms are likely to see widespread adoption due to their effectiveness in reaching and engaging a large audience.

“A WhatsApp-led e-commerce experience makes it more inclusive and accessible to the underserved mass market, due to its low data and digital literacy requirements as well as the over 95% usage rate in many emerging markets,” said Mark Kiarie, Co-Founder and COO at Chpter. 

Chpter is a certified Meta Partner, enabling it to leverage advanced features in WhatsApp, Facebook, and Instagram to better serve businesses. The platform can create product catalogs for seamless checkout and payment processes and customize marketing campaigns for its clients. Currently active in Kenya and South Africa, Chpter collaborates with companies across various sectors, including e-commerce, retail, finance, education, and more. The startup plans to expand into Nigeria, Ghana, Egypt, and Morocco, with a client list that includes Britam, Decathlon, and others.