Chaka, a Nigerian investment platform, is making a dual announcement today.
According to TechCrunch, the first announcement involves the company receiving the first-ever SEC license in the country. The outlet confirms that Chaka had to go through great measures to obtain Nigeria’s first SEC license, and one of the main things they had to do was ensure that they didn’t provide online brokerage services. Instead, the company confirms, they direct their users to Citi Investment Capital in Nigeria and DriveWealth LLC — both based in the United States, and both of whom have a partnership with the Nigeria-based company — to issue stocks and securities.
“When we launched, we kept SEC in the loop. But now, over the last six months, we’ve engaged with them, showed them our business models, the benefits, the markets. Now we’re proud to have SEC’s first fintech license. We believe that the most important thing is that the market has clarity and understands the regulations required to be registered. And we’re thrilled to have broken new ground and cleared up what it takes to be able to offer services in the market,” said Tosin Osibodu, the CEO of Chaka, to TechCrunch.
In addition, the company has also announced that it’s closed $1.5 million in pre-seed funding. The pre-seed round was led by Breyer Capital, while 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures participated. It’s the second joint deal for 4DX Ventures and Breyer Capital in the span of two weeks.
“As we advance, I think something that we’re just very focused on is how do we continually reduce access barriers, and we are proud of the initiatives that we’ve brought and are to come. Watch this space for more partnerships, even with apex institutions in our markets as well,” said Osibodu about the pre-seed funding.
