Unlocking the Potential of Social Commerce in Kenya
As social commerce gains traction among micro, small, and medium-sized enterprises (MSMEs) in Kenya, the country is on the brink of fully harnessing its potential. With a large number of Kenyans actively engaged on social media platforms, businesses have embraced this model to connect with their customers.
One of the main challenges faced by e-commerce businesses is cart abandonment when users are redirected away from their preferred social media platforms. Most consumers prefer a seamless shopping experience without leaving their social feeds. For MSMEs selling online, this presents a valuable opportunity to convert engagement into transactions by allowing customers to complete purchases within their social media experience. This is where the concept of social commerce comes into play.
In response to this trend, Chpter, a tech startup in Kenya co-founded by Tesh Mbaabu, has developed a platform that streamlines conversations, marketing, and payments on WhatsApp and Instagram. Unlike traditional e-commerce platforms, Chpter acts as a facilitator for businesses to sell seamlessly through these social media channels without operating as a marketplace itself.
Mbaabu highlighted the significant growth of e-commerce in Africa, with social media platforms like WhatsApp, Instagram, Facebook, and TikTok evolving into vibrant online shopping hubs. Chpter empowers businesses to leverage these platforms as integrated sales channels by offering technology for WhatsApp marketing campaigns, order collection, and payments directly within social media.
With Kenya’s mobile penetration exceeding 130% and social media users spending over three hours daily on these platforms, the potential for social commerce is immense. The shift towards converting social engagement into sales is not just a concept but a rapidly expanding market.
Following a successful $1.2 million pre-seed funding round, Chpter is scaling its technology to provide more advanced solutions and planning to expand beyond Kenya into markets like Egypt and Nigeria. The startup’s backers, including Pani, an Africa-focused investment firm led by former Cellulant CEO Ken Njoroge, see untapped potential in Kenya’s social commerce sector.
Chpter operates on a hybrid revenue model, combining subscription fees, transactional charges, and strategic partnerships. Businesses using the platform pay a monthly Software-as-a-Service (SaaS) fee based on their size, with additional revenue generated from customer interactions and outbound WhatsApp messaging facilitated by Chpter as a Meta Business Partner.
Chpter’s focus on user acquisition and market expansion before prioritizing profitability aligns with typical venture-backed startups’ growth strategies. The startup aims to build a strong customer base, refine its product, and capture market share before transitioning towards monetization.
As businesses increasingly turn to WhatsApp and Instagram as digital storefronts, Chpter’s role as the infrastructure powering social commerce positions it for long-term success. The future of social commerce in Kenya will depend on how businesses adopt and scale with tools like Chpter’s, shaping the technology driving this evolving market.
