The global chat commerce market, valued at an estimated $80 billion, is recognized as the next big wave in digital commerce, following the growth of e-commerce and app-based transactions. With more people using chat platforms than the internet itself, businesses are increasingly turning to chat as a medium to interact with and serve their customers.
MClickatell, a leader in the chat commerce sector, has announced raising $91 million in Series C funding to accelerate its growth. The funding round was led by Arrowroot Capital, with participation from Kennedy Lewis Investment Management, Endeavor Global, and Harvest.
The company, founded in 2000 in South Africa, operates globally with headquarters in California and offices in Nigeria and Canada. Over the years, Clickatell has evolved from enabling SMS-based customer engagement to integrating payments into its offerings. Its platform now allows businesses to engage with customers via SMS, USSD, and WhatsApp, offering services like product inquiries, purchases, order tracking, and customer support.
Clickatell is particularly recognized for its innovation in chat banking, including a pioneering integration with ABSA Bank in South Africa, which enables banking and payments through WhatsApp. Recently, the company partnered with Visa to launch Chat2Pay, a solution that allows businesses in the U.S. to send payment links via SMS or WhatsApp for contactless transactions.
The company has also established a significant presence in Africa. In Nigeria, it serves 17 million users and facilitates 1.3 million payment transactions daily. Across its markets, Clickatell has processed over 30 billion interactions and 2 billion transactions since 2020.CEO Pieter de Villiers emphasized the strategic importance of chat commerce, highlighting its potential to outpace e-commerce due to the sheer number of users on chat platforms. He noted that partnerships like the one with Visa will expand opportunities for businesses to offer seamless payment experiences.
TNohe Series C funding will support Clickatell’s efforts to deepen its presence in the U.S., scale its marketing and sales initiatives, and enhance its chat commerce services across South Africa and Nigeria. The company has achieved consistent profitability over the past decade and intends to test new products with this capital, positioning itself for a potential public offering in the near future.
Allen Taylor of Endeavor Catalyst praised Clickatell as a trailblazer, saying, “Clickatell has consistently been ahead of the curve, transforming how businesses communicate and transact with their customers.
“With the growing adoption of chat-based platforms for commerce and payments, Clickatell is poised to continue its leadership in this burgeoning market.
