ChapChap, a Ugandan fintech startup that generates trustworthy financial profiles for MSMEs, has secured funding ffrom Nordic Impact Funds to help it grow commercially and achieve social impact.
“We are very excited to start out 2022 with this capital injection to accelerate our expansion within and beyond the Ugandan market. We are already servicing more than 20,000 MSMEs in Uganda. This injection is to facilitate digital capacity and financial inclusion for a million customers,” said Emmanuel Emodek, co-founder and managing director of ChapChap.
Nordic Impact Funds invests in early to mid-stage companies that have proven impact and profitability and are scaling their business model. All investments are made with a gender lens, and the firm prefers to be a hands-on partner with the firms it invests in.
“We are extremely proud of this investment. It has a strong focus on small and often women-owned businesses, who can professionalise and expand their businesses thanks to ChapChap,” said Lisbeth Stausholm, the firm’s founder and managing partner.
ChapChap was founded in 2016 by Emmanuel Emodek and James Alituhikya, along with Monica Asiimwe Kiconco, a former primary school teacher, with the goal of empowering small and medium-sized businesses by providing them with digital financial tools and services to help them scale.
The startup uses its Android software to help MSMEs formalize portions of their businesses. The tool allows small businesses to start operating mobile money agencies, track all transactions in the store, and develop a credit profile on the MSMEs.