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Grace Ashiru
Despite the growing popularity of social commerce among micro, small, and medium-sized enterprises (MSMEs), Kenya has yet to fully harness its potential. With millions of Kenyans actively using social media platforms, many businesses have adopted this model to reach customers.
A key challenge for e-commerce businesses has been cart abandonment when users are redirected away from their favorite social platforms. Most consumers prefer to browse and shop without leaving their social media feeds. For MSMEs selling online, this shift presents a valuable opportunity: enabling customers to complete purchases within their social media experience, seamlessly converting engagement into transactions. This is the core principle of social commerce.
Recognizing this trend, Kenya’s Chpter, co-founded by Tesh Mbaabu—who also co-founded the YC-backed B2B e-commerce platform Marketforce—has developed a platform that automates conversations, marketing, and payments on WhatsApp and Instagram.
Startups like Chpter don’t sell products directly; instead, they provide the technology that enables other businesses to sell seamlessly through platforms like WhatsApp and Instagram. Functioning behind the scenes, Chpter acts as a bridge between businesses and customers by managing order processing, payments, and customer interactions—without operating as a marketplace itself.
“In Africa, e-commerce is projected to reach over 500 million shoppers by 2025. Social media platforms such as WhatsApp, Instagram, Facebook, and TikTok have transformed into thriving online shopping hubs where a significant amount of buying and selling takes place,” Mbaabu told TechCabal.
Chpter empowers businesses to transform social media from a mere marketing tool into a fully integrated sales channel. “We provide businesses with the technology to run WhatsApp marketing campaigns—offering far better engagement than SMS or email—while also enabling seamless order collection and payments directly within these social platforms,” he added.
With mobile penetration in Kenya surpassing 130% and social media users spending an average of over three hours daily, the potential for social commerce is immense. Turning social engagement into sales is no longer just a concept but an actively expanding market.
Following its $1.2 million pre-seed funding round in September, Chpter has been scaling its technology to deliver even more advanced solutions. The startup is also eyeing expansion beyond Kenya, with plans to enter key markets like Egypt and Nigeria.
Chpter’s backers see significant untapped potential in Kenya’s growing social commerce sector. The startup’s $1.2 million pre-seed round was led by Pani, an Africa-focused investment firm co-founded by former Cellulant CEO Ken Njoroge.
Other investors include Plesion Capital, Techstars, Norrsken, Renew Capital, ViKtoria Ventures, and notable angel investors such as Nala CEO Benjamin Fernandes and Workpay co-founders Paul Kimani and Jackson Kibigo.
Before securing this funding, Chpter joined the Norrsken Accelerator in 2023 and later participated in Safaricom’s Spark Accelerator in May 2024. While Norrsken’s investment remains undisclosed, Safaricom provided Chpter with three months of training and mentorship to help scale its operations.
Venture-backed startups like Chpter typically focus on user acquisition and market expansion before prioritizing profitability. The key objective is to build a strong customer base, refine the product, and capture market share before shifting toward monetization.
“Yes, we do have plans to raise more funding, but we are prioritizing profitability before seeking the next round of growth capital,” said Chpter CEO Mbaabu.
Chpter operates on a hybrid revenue model, combining subscription fees, transactional charges, and strategic partnerships.
•Businesses using Chpter’s platform pay a monthly Software-as-a-Service (SaaS) fee based on their size:
•$50 for small businesses
•$120 for medium-sized businesses
•$550 for enterprises
•In addition to subscriptions, Chpter earns revenue from customer interactions processed by its AI-powered sales and support agents. Businesses are charged per conversation handled by the system.
•As a Meta Business Partner, Chpter facilitates outbound WhatsApp messaging for marketing and operational purposes. This allows businesses to send messages to customers through Chpter’s platform, generating additional revenue.
“We have built a self-service platform that allows businesses to register for a free trial, connect their social media accounts, and immediately start benefiting from our technology,” Mbaabu added.
For now, Chpter is positioning itself as the infrastructure powering social commerce. Its long-term success will depend 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.
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