Nigeria’s Risevest Acquires Chaka for Market Consolidation

Nigeria’s Risevest, an asset supervisor offering Nigerians with entry to international investments, has formally acquired Chaka, a a digital buying and selling platform, and the 2 corporations goals to construct a extra formidable and complete monetary associate for his or her clients independently, the phrases of the deal weren’t disclosed.

“Risevest and Chaka have lengthy been devoted to empowering people to realize extra with their monetary journey. With our shared imaginative and prescient and dedication to democratising entry to international funding alternatives, this union marks a major milestone in our mission,” introduced Eke Urum, founder & CEO Risevest.

Chaka was based in 2019 by Tosin Osinbodu in Nigeria to permit customers purchase shares of publicly traded firms in Nigeria and the US fractionally for as little as $2. In 2021, Chaka obtained a digital sub-broker license simply three months after it was practically shut down by the Nigerian Safety and Alternate Fee (SEC) for working and not using a license. The agency had at one time had its financial institution accounts frozen by the Central Financial institution of Nigeria.

Launched in partnership with DriveWealth, LLC, a U.S. based mostly chief in international digital buying and selling know-how and facilitated by Citi Funding Capital Restricted, a licensed Nigerian stockbroking agency registered with the Safety and Alternate Fee (SEC), Chaka offers its clients with compliant entry to the US inventory market as a digital ‘Funding Passport’ for customers to spend money on shares listed on NASDAQ, the New York Inventory Alternate and the Nigerian Inventory Alternate. Chaka had over 4000 belongings and indexes from firms similar to Apple, Alibaba, Google, the S&P 500 index and plenty of extra.

Based on Tosin Osibodu, Chief Government Officer of Chaka, Chaka was created to offer native buyers entry to US capital markets in addition to give the worldwide neighborhood entry to native capital markets.

“Our objective is to offer premium borderless buying and selling and funding alternatives for Nigerian professionals and buyers. Chaka facilitates entry to belongings listed on the Nigerian inventory trade, American inventory exchanges in addition to international blue-chip firms from 40+ international locations around the globe,” Osibodu mentioned throughout the launch of Chaka.

Risevest will profit from Chaka’s know-how stack, internet properties and license as in June 2021, Chaka acquired the Securities Alternate Fee of Nigeria’s (SEC) Digital Sub-Dealer/Sub-Dealer License Serving A number of Brokers. In July the identical yr, Chaka raised $1.5M in a pre-seed funding spherical to allow borderless investments throughout Africa and ship digital investments options for African companies.

Based on Tosin Osibodu, Co-founder & CEO, Chaka Applied sciences mentioned “That is certainly a major milestone for us at Chaka. We see digital investments as a possibility to spice up financial transformation in Africa, and our objective is to make use of this funding to deliver this imaginative and prescient to life. With this capital, we’ll concentrate on our objectives to construct a roster of formidable companions and speed up our growth to different markets inside Africa. This funding additionally permits us to rent prime expertise and combine extra superior functionalities into our funding and wealth administration options for companies.”

Chaka introduced it might use the funds to broaden its footprints in West Africa to achieve extra retail buyers and entice extra international gamers to African Capital Markets and join partnerships with asset managers, monetary know-how corporations, and regulators.

For Chaka’s clients, the acquisition means extra choices.

“First, you’ve got an expanded set of funding choices,” mentioned Risevest’s Urum. “Whether or not you’re a Rise person who desires to decide on some particular shares by yourself or a Chaka person who desires higher passively managed funding portfolios, you now have entry to each worlds. You may sit up for extra asset lessons, buying and selling choices and markets we are able to allow.”

Urum added that the 2 corporations will double down their efforts to offer customers a greater expertise and improve their entry to the funding assets they want.

“By leveraging our assets as a mixed entity, you may sit up for extra academic instruments, funding suggestions, and assist that will help you develop your cash and make extra assured monetary choices,” mentioned Urum, who can be cofounder of Buycoins Africa, Inc a cryptocurrency trade in Lagos, Nigeria.

Each Rise and Chaka merchandise will proceed to function independently however the agency will harmonise the experiences and make it a lot simpler to transition from one product to the opposite. 

Rise enables you to decide between shares, US actual property and stuck earnings and permits its customers to unfold their dangers and faucet into totally different investments multi functional place or make investments in the direction of a objective similar to retirement, larger training, automobile, house or journey.

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