Union54 raises $12M seed extension led by Tiger Global

In April 2022, Union54 closed a $12 million seed extension round led by Tiger Global, with participation from existing investors including Vibe Capital and new investors Earl Grey Capital and Not Boring Capital (Packy McCormick). This followed a $3 million seed round also led by Tiger Global in October 2021 and Y Combinator participation. At the time, the company had issued over 500,000 virtual debit cards and was processing double-digit millions in volume, with revenue growing rapidly. The capital was intended to expand the card-issuing infrastructure, grow the team, broaden the client base across Africa, and explore local card network initiatives with central banks.

The company subsequently faced a significant chargeback fraud incident in mid-2022 involving an attempted $1.2 billion fraud, leading to suspension of USD card services, a compliance audit, and a multi-month operational pause. Union54 used the period to pivot, launching ChitChat in 2024 — an encrypted messaging platform with built-in payments wallet, currency conversion, and virtual Mastercard debit cards via partnership with Paymentology. As of 2024-2026, the company remains active with ~19 employees, focused on ChitChat for consumer cross-border payments and social commerce while maintaining its B2B card infrastructure heritage. It is a portfolio company of Lofty Inc VC (invested 2021).

Union54 provides an API that enables African software companies and fintechs to issue and manage virtual and physical multi-currency debit cards without requiring a bank or third-party processor. The platform handles BIN sponsorship, transaction processing, settlement, and customization for use cases including digital banking, corporate expenses, and BNPL services. It was the first Zambian company accepted into Y Combinator (S21).

Following a major chargeback fraud incident in 2022 that led to a temporary halt in card issuing operations, the company pivoted and launched ChitChat, a secure messaging app with integrated digital wallet, USD-to-local currency conversion, P2P transfers, and virtual Mastercard debit cards (in partnership with Paymentology and Mastercard). ChitChat targets cross-border payments and social commerce across Africa, addressing high remittance costs.

The business model combines API usage, issuance, and transaction fees with consumer wallet and card revenue in ChitChat. It has served over 100 fintech clients historically and issued millions of cards prior to the 2022 disruption.