Afrigather Bamboo, the Y Combinator-backed funding app that enables Africans to purchase and commerce native and worldwide shares, is increasing to Canada after securing the nation’s Cash Service Enterprise (MSB) licence.
The corporate additionally launched its remittance cost service, Cash by Bamboo. The product will allow diaspora cash transfers to Africa, to scale back excessive cross-border charges by fee-free transfers and aggressive change charges.
“With many Africans now away from the continent, many need to make investments again residence, however complexity, excessive commissions and charges discourage it. A solution to begin is by addressing these ache factors, which is why we’re providing Cash” Richmond Bassey, Bamboo’s co-founder and CEO stated.
Bamboo’s enlargement to Canada was from a enterprise standpoint. In 2022, Nigeria was the fourth-largest immigration supply nation to Canada, with 22,085 Nigerians welcomed into the nation.
”Primarily based on insights, one of many nations our customers have emigrated to essentially the most is Canada with the UK on prime of the checklist. This implies extra use for the app in Canada earlier than we go into the UK and different markets,” Bassey stated.
Based in 2019 by Richmond Bassey and COO Yanmo Omorogbe, Bamboo has seen some success since launching in Nigeria in 2020. In 2022, the corporate raised $15 million in a spherical led by American enterprise capital companies Greycroft and Tiger International. Bamboo claims it has 500,000 customers.
With its remittance play, Bamboo is coming into a aggressive remittance market with well-established gamers like Gray Finance, Lemfi, Kyshi, and Nala. “The remittance market is large, I don’t assume one participant can resolve the issue. The distinction is within the purpose and what the corporate is making an attempt to realize”, Bassey added.
Whereas these firms primarily generate income from transaction charges and commissions which regularly embody various change charges for forex conversions, Cash by Bamboo will supply fee-free transfers and aggressive change charges to clients.
“That is simply the primary stage for us to unravel an issue that might be helpful in serving the diaspora. It’s a means to an finish, we’re constructing a set of merchandise that may help Africans all over the place. After we have a look at the price and alternatives for providing Cash by Bamboo transaction-free, we’re happy with providing the service that manner,” Bassey advised TechCabal.
Bamboo additionally partnered with charitable organisations just like the Ladies at Threat Worldwide Basis (WARIF) and Chess2Slums, permitting customers to make direct contributions through the Cash by Bamboo app.
After its enlargement into Ghana in 2022, the corporate added Nigerian shares to its platform in Could 2024. In June 2024, Bamboo commenced operations in South Africa, enabling customers to spend money on U.S. shares immediately from their smartphones. This enlargement follows the acquisition of a monetary companies supplier licence from the South African Monetary Sector Conduct Authority (FSCA).
