Kenyan fintech startup Cloud9 has acquired social commerce platform Chpter in an all-stock deal as it expands its digital banking services to more businesses through the platforms already used to sell and engage customers.
The acquisition brings Chpter’s social commerce technology, merchant base and AI-powered sales tools into Cloud9’s business banking platform.
With financial terms of the transaction not disclosed, Cloud9 will discontinue the standalone Chpter app and integrate its tools for businesses selling through WhatsApp and Instagram into its existing platform.
More than 4,500 businesses using Chpter will continue accessing the service through Cloud9.
The deal is the fintech’s second acquisition in three months, following its purchase of ticketing platform M-Tickets in May for about KES 100 million ($773,000).
Together, the two acquisitions give Cloud9 access to different business transaction channels. While M-Tickets connects the company with event organisers and entertainment businesses, Chpter provides access to merchants that sell directly to customers through social media platforms.
Cloud9 said the acquisitions support its plan to build financial services around existing business activities rather than offering banking as a separate service.
“The simplest way to understand the Chpter acquisition is that Cloud9 is building financial services around the places where people and businesses already transact, rather than treating banking as a standalone activity,” Tesh Mbaabu, Cloud9 co-founder, said. “Together, we plan to connect conversations, transactions and financial services in one ecosystem.”
Mbaabu and Mesongo Sibuti founded Chpter before leaving the company in September 2025 to establish Cloud9. The acquisition brings them back to a business they helped create.
Following the transaction, Chpter’s product, engineering, customer success and commercial teams have joined Cloud9. However, Mark Kiarie and Kevin Kuria, who managed Chpter’s operations after Mbaabu and Sibuti departed, will not join the fintech.
The transaction was completed after about four months of negotiations and was settled entirely through shares. Cloud9 declined to disclose Chpter’s valuation and revenue figures, but Mbaabu said the acquisition gives the company access to an established customer base, technology and investor support.
Chpter raised $1.2 million in pre-seed funding in 2024 to expand into Nigeria, Ghana and Egypt. Its investors include Ventures Platform, Future Africa, Launch Africa, PANI, Reflect Ventures, Techstars, Renew Capital, Greenhouse Capital, Ajim Capital, Norrsken and Sunny Side Venture Partners.
The startup built tools that help businesses manage sales conversations and transactions through social platforms. Its technology allows merchants to engage customers, process sales and improve business operations through channels where many small businesses already interact with buyers.
Mbaabu said acquiring Chpter was a better option than developing similar technology internally.
“We acquired Chpter because it already has a proven product, customer base, commerce data and deep technical expertise in AI and social commerce,” he said. “Building this from scratch would have taken time in a fast-moving market.”
Cloud9 expects the acquisition to reduce customer acquisition costs and create opportunities to provide more financial products to businesses already using its platform.
The company also sees value in the transaction data generated through commerce and ticketing platforms. Such information can help financial technology companies understand business activity and develop products such as payments, lending and other services.
Recently, many startups have been moving beyond standalone banking applications and embedding financial services into platforms where customers already spend money, whether through commerce, entertainment or digital marketplaces.
Cloud9 is targeting businesses and younger digital users with services including multicurrency accounts, cross-border payments and virtual cards. The company competes in a market that includes established African fintech companies offering payments, banking and merchant services.
Despite its expansion, Cloud9 has not provided a timeline for profitability or disclosed when it plans to raise additional capital. Mbaabu said the company remains focused on growing carefully.
“Our focus remains disciplined growth and sound unit economics, rather than making short-term profitability promises,” he said. “We will raise more capital when it meaningfully supports that plan and when the timing is right.”
With Chpter and M-Tickets now under its portfolio, Cloud9 will focus more on businesses’ daily transactions, combining commerce tools with financial services as it looks to expand across African markets.