The potential of social commerce in Kenya is yet to be fully harnessed by businesses, despite its popularity among micro, small, and medium-sized enterprises (MSMEs). With millions of Kenyans using social media platforms, many businesses have adopted social commerce to reach their target audience.
One challenge faced by e-commerce businesses is users abandoning purchases when redirected away from their favorite social platforms. Consumers prefer to browse and shop without leaving their social media feeds. For MSMEs selling online, this presents an opportunity to allow customers to shop within their social media experience, converting engagement into transactions.
Chpter, a Kenyan startup co-founded by Tesh Mbaabu, has developed a platform that automates conversations, marketing, and payments on WhatsApp and Instagram. Rather than selling products directly, Chpter provides technology for businesses to sell through these platforms, acting as a bridge between businesses and customers by managing tasks like order processing, payments, and customer interactions without being a marketplace itself.
With the increasing use of social media platforms like WhatsApp, Instagram, Facebook, and TikTok for online shopping, Chpter aims to help businesses convert social media into a robust sales channel. The startup enables businesses to send WhatsApp marketing campaigns, collect orders, and process payments seamlessly within social media platforms.
Given the high mobile penetration and daily social media usage in Kenya, the potential for social commerce is significant. Chpter recently raised $1.2 million in pre-seed funding and plans to expand its operations to markets like Egypt and Nigeria.
Chpter’s investors recognize the untapped business model in Kenya’s social commerce landscape. The startup’s revenue model includes subscription fees, transactional charges, and partnerships. Businesses using Chpter’s platform pay a monthly fee based on their size and also pay per conversation handled by its AI-powered agents.
While Chpter currently positions itself as the infrastructure behind social commerce, its long-term success will depend on how businesses adopt and scale with its tools. As social media platforms continue to serve as storefronts, the focus shifts to who will lead the way in powering social commerce.