Sendsprint has completed the acquisition of Nobel Financial Inc. for an undisclosed fee. It was founded in 2022 by ex-Flutterwave executive Damisi Busari, and facilitates transfers for a flat fee of $5.
The company processes transfers within 30 minutes. It operates in Nigeria, Ghana, Kenya, South Africa, and the United Kingdom. With the acquisition of Nobel Financial, Sendsprint can now offer its services to users in 16 American states.
Busari expressed excitement about the acquisition, stating, “The US offers massive opportunities for us. We’re eager to bring our unique, people-focused technology to the US market.”
Lower Fees for African Remittances
Africa has seen a significant rise in remittance flows. In 2022, a record $100 billion was received. The US-to-Africa remittance corridor is crucial, driven by increased migration and better financial stability among African diasporas.
However, sending money to Africa remains costly. Fees can reach up to 15% of the transaction value, depending on the service provider and corridor. Startups like Lemfi, Sendsprint, and TransferGo aim to reduce these costs.
Also Read: Medium Expands Partner Program, Allowing Writers from 77 New Countries to Earn
Enhanced Access and Convenience
Sendsprint has partnered with over 3,000 African retailers, including Shoprite, Dapper Monkey, Jumia, and Cake City. These partnerships enable users to send gift cards to recipients across the continent. This offers an additional layer of convenience for Africans receiving remittances.
Regulatory compliance is essential for startups. The acquisition of Nobel Financial will help Sendsprint in this area. Nobel Financial’s Chief Compliance Officer, Scott McClain, will join Sendsprint in the same role, along with his team. Sendsprint did not explain why McClain is the only executive they will retain.
This acquisition marks a significant step for Sendsprint. It aims to offer affordable, efficient transfer services to more users, expanding its reach into the US market. This expansion will ultimately benefit African users by providing them with more reliable and cost-effective remittance options.