Risevest buys Chaka: Firms speak on how investors will be impacted

Investment company, Risevest, which allows Nigerians invest in local and foreign securities using apps, has acquired its competitor, Chaka, for an undisclosed amount.

The companies confirmed the sale on Wednesday.

“Today, we are thrilled to share some exciting news that will shape the future of financial services for our valued users. Risevest has officially acquired Chaka, and together, we are embarking on a journey to build a more formidable and comprehensive financial partner for our users’ financial journey,” they said in a statement.

Chaka and Risevest will remain separate products, they said.

Risevest founder Eke Urum was earlier quoted by TechCrunch as saying that while Chaka’s ownership and value will be updated, “everything else remains; the team stays the same.”

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Chaka was founded in 2019. Its app allows users buy and sell shares of publicly traded companies in Nigeria and the United States for as little as $2.

Nigeria’s Securities and Exchange Commission licenced the platform in June 2021 to operate a digital platform for buying and selling stocks. Chaka was the first Nigerian firm to acquire the digital sub-broker license introduced by the SEC in April that year.

Risevest started operations in 2014. In November 2014, it completed its registration with the United States Securities and Exchange Commission (SEC) and became a US Registered Investment Adviser.

Rise’s non-Nigerian investments are held through third-party partnerships with regulated entities in their respective jurisdictions.

What he transaction means for investors

This how the companies explained what the transaction means for investors:

First, you have an expanded set of investment options. Whether you’re a Rise user who wants to choose some specific stocks on your own or a Chaka user who wants better passively managed investment portfolios, you now have access to both worlds. You can look forward to more asset classes, trading options and markets we can enable. 

Secondly, we will double down our efforts to give you a better experience and increase your access to the investment resources you need. By leveraging our resources as a combined entity, you can look forward to more educational tools, investment recommendations, and support to help you grow your money and make more confident financial decisions.

Both Rise and Chaka products will continue to operate and evolve, and you, as the customer, will always remain at the forefront of how we evolve both products. But now, we will harmonise the experiences and make it much easier to transition from one product to the other.