A young Nigerian startup has made a huge stride in the global market by acquiring a 10-year-old American company. Sendsprint, a Nigerian money transfer startup founded in 2022, has completed the acquisition of Nobel Financial Inc., an established US-based financial services firm.
The terms of the acquisition have not been disclosed, but the move is seen as a strategic step for Sendsprint to expand its reach and leverage the expertise of the acquired company.
Sendsprint, founded by ex-Flutterwave executive Damisi Busari, has been making waves in the African remittance market with its promise of facilitating transfers for a flat fee of $5 and processing transactions within 30 minutes. The startup has already established operations in Nigeria, Ghana, Kenya, South Africa, and the United Kingdom.
“We see immense value in Nobel Financial, and that was what this acquisition was borne out of. The US presents a massive opportunity for us as a company, and we are excited to bring our unique blend of people-focused technology solutions and nuanced understanding of Africans in the US market to make this expansion into the US a remarkable success,” Busari said in a statement.
The acquisition of Nobel Financial will enable Sendsprint to offer its services to users in 16 American states, further solidifying its foothold in the lucrative US-to-Africa remittance corridor. This move comes as Africa has witnessed a significant surge in remittance flows in recent years, with a record $100 billion received in 2022.
The US-to-Africa remittance corridor is particularly vital, driven by increased migration and improved financial stability among Africans in the diaspora. However, the cost of sending money to Africa remains high, with fees rising to 15% of the transaction value, depending on the service provider and corridor.
Innovative startups like Sendsprint, Lemfi, and TransferGo have emerged to tackle this challenge, offering more affordable and efficient money transfer solutions. Sendsprint has established partnerships with over 3,000 African retailers, including prominent brands like Shoprite, Dapper Monkey, Jumia, and Cake City, enabling users to send gift cards to recipients across the continent.
The acquisition of Nobel Financial will also help Sendsprint strengthen its regulatory compliance efforts. Scott McClain, Nobel Financial’s Chief Compliance Officer, will join Sendsprint in the same role, along with members of his team.
Sendsprint’s bold move to acquire a US-based company at such an early stage in its development demonstrates the company’s ambition and confidence in its ability to succeed in the global market. This acquisition not only expands Sendsprint’s reach but also demonstrates the growing influence and capabilities of African startups on the global stage.
As the African fintech world continues to evolve, Sendsprint’s acquisition of Nobel Financial serves as an inspiring example of the potential for young, innovative companies from the continent to make their mark on the international scene.
