Canada based cross border payments startup, Chimoney, has secured an unexpected lifeline after its parent company, Chi Technologies Inc., signed an agreement in principle to be acquired by CapitalSage Holdings through its subsidiary, CapitalSage Vantage Limited.
The development comes barely a month after Chimoney announced plans to shut down operations due to insufficient funding and stalled growth. Founder, Uchi Uchibeke, had disclosed that despite building a platform that enabled businesses to send payments in 41 currencies across Africa, North America and Latin America, the company struggled to scale customer acquisition and had raised less than $1 million in funding.
According to Uchibeke, CapitalSage approached the company shortly after news of the shutdown became public. Under the proposed acquisition, all Chimoney investors will be repaid in full, employees will receive compensation from the proceeds, and Uchibeke will remain with the business for six months to oversee the transition. The transaction is expected to be completed in phases to satisfy regulatory requirements under Canada’s Retail Payment Activities Act.
For CapitalSage, which already operates in Nigeria, Kenya, The Gambia, the United Arab Emirates and the United Kingdom, the acquisition provides a strategic entry into Canada’s payments market. Uchibeke noted that preserving Chimoney’s Money Services Business registration and Payment Service Provider licence played a crucial role in attracting the deal, describing the acquisition as an outcome that emerged from the transparency surrounding the company’s shutdown process. He is expected to shift his focus to APort, an independent artificial intelligence venture.