EXCLUSIVE: Kenya's Cloud9 acquires Chpter less than a year after founders left

Tesh Mbaabu and Mesongo Sibuti's entrepreneurial journey took an unexpected turn just weeks after they launched Cloud9, a digital banking service for businesses in Kenya. The duo, who left their previous venture in September 2025 to start Cloud9, has now reunited with the company they left behind. As the co-founders of Chpter, a social commerce platform, they've led the startup to a significant milestone: an all-stock acquisition by Cloud9, its parent company.

In May, Cloud9 acquired M-Tickets, a ticketing platform for about KES 100 million ($773,000). The latest deal reunites Mbaabu and Sibuti with Chpter, marking a strategic move by Cloud9 to build financial services around the places where people and businesses already transact. According to Mbaabu, the acquisition is evidence of the company's vision: connecting conversations, transactions, and financial services in one ecosystem.

As I reflect on this story, it's fascinating to see how Cloud9 is redefining the boundaries of digital banking. By acquiring businesses where customers already transact, the company is creating a more seamless experience for its clients. It's a move that not only expands its reach but also sets a new standard for innovation in the fintech space.

Cloud9's acquisition spree began with M-Tickets, a ticketing platform that connects event organizers and live entertainment businesses. The deal marked a significant milestone for the company, which had been focused on building its digital banking services. The acquisition of Chpter, however, takes this strategy to the next level. By integrating Chpter's AI-powered sales tools for WhatsApp and Instagram into its business banking platform, Cloud9 is creating a more comprehensive financial services offering.

The deal reunites Mbaabu and Sibuti with Chpter, a startup they left in September 2025. The acquisition provides a clear indication of Cloud9's strategy: acquiring businesses where customers already transact, then layering financial services on top. For Chpter, the acquisition means its 4,500 businesses will continue operating through Cloud9, while its product, engineering, customer success, and commercial teams have joined the company.

The acquisition of Chpter has been in the works for about four months, with negotiations completed entirely in stock. According to Mbaabu, the deal gives Cloud9 a large customer base, solid technology, and a strong cohort of investors. Chpter's backers include Ventures Platform, Future Africa, Launch Africa, PANI, Reflect Ventures, Techstars, Renew Capital, Greenhouse Capital, Ajim Capital, Norrsken, and Sunny Side Venture Partners.

The acquisition also reunites Mbaabu and Sibuti with their former colleagues, Mark Kiarie and Kevin Kuria, who led Chpter's day-to-day operations after they departed. However, Kiarie and Kuria will not join Cloud9.

As Cloud9 continues to expand its reach, the company's acquisition strategy is not without its challenges. Building similar capabilities internally would have taken time, and acquiring Chpter has given Cloud9 a proven product, customer base, commerce data, and deep technical expertise in AI and social commerce.

The acquisition gives Cloud9 another commerce channel alongside M-Tickets, providing a more comprehensive financial services offering. While M-Tickets connects the company to event organizers and live entertainment businesses, Chpter's social commerce platform will enable Cloud9 to connect with a wider range of customers.

The acquisition of Chpter marks a significant milestone for Cloud9, and it's clear that the company is committed to building a more comprehensive financial services offering. As I reflect on this story, it's clear that Cloud9's vision for the future of fintech is one of innovation, experimentation, and growth.

By acquiring businesses where customers already transact, Cloud9 is creating a more seamless experience for its clients. It's a move that not only expands its reach but also sets a new standard for innovation in the fintech space. As Cloud9 continues to grow and evolve, it will be interesting to see how its acquisition strategy unfolds.