Nigerian fintech startup Sendsprint has made headlines with its acquisition of Nobel Financial Inc., a US-based global remittance service provider. This strategic move aims to enhance Sendsprint’s presence in the United States and broaden its services for customers sending money to Africa.
Founded in 2014, Nobel Financial specializes in international remittance services, facilitating money transfers to over 32 countries across Africa, Latin America, Asia, and the Middle East. The acquisition allows Sendsprint to tap into Nobel’s established network, enabling money transfers and gifting from 16 US states, including New Jersey, Maryland, and Georgia, to recipients in Nigeria, Ghana, Kenya, and other African nations.
Damisi Busari, the CEO and founder of Sendsprint, expressed enthusiasm about the acquisition, stating, “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 a remarkable success.”
Remittance flows to Sub-Saharan Africa reached $54 billion in 2023, according to the World Bank. This figure highlights the growing importance of remittances as a financial lifeline for many families and communities across the continent. In fact, remittance flows have outpaced Foreign Direct Investment (FDI) and Official Development Assistance (ODA), and this trend is expected to continue due to increasing migration and financial stability among Africans in the diaspora.
Despite the growing volume of remittances, the cost of sending money to Africa remains high. Sending $200 to the region costs an average of 7.9%, making it one of the most expensive regions for remittance services globally. Sendsprint aims to disrupt this market by offering fast, secure, and low-cost transfers, making it easier for users to send money home.
Sendsprint differentiates itself by charging a flat fee of $5 for all transactions, a competitive rate compared to traditional remittance services like Western Union and MoneyGram. The startup also emphasizes its commitment to security, processing transactions quickly, often within 30 minutes, while employing advanced security measures such as two-factor authentication and real-time transaction monitoring.
In addition to money transfers, Sendsprint has partnered with over 3,000 retailers across Africa, including well-known brands like Shoprite and Jumia, to allow users to send gift cards and in-kind gifts, such as bags of rice, to recipients in Africa. This feature adds a personal touch to the remittance process, allowing senders to provide tangible support to their loved ones back home.
As part of the acquisition, Nobel Financial’s Chief Compliance Officer, Scott McClain, will join Sendsprint to enhance its compliance program in the US. This addition is crucial as regulatory compliance has become a significant focus for fintech companies, ensuring that they operate within legal frameworks while providing secure services.
The acquisition of Nobel Financial marks a significant milestone for Sendsprint as it seeks to expand its footprint in the lucrative US remittance market. By leveraging Nobel’s established infrastructure and expertise, Sendsprint aims to provide affordable and efficient remittance solutions for Africans living in the United States. As the demand for remittance services continues to grow, innovative startups like Sendsprint are well-positioned to meet the needs of a diverse and expanding customer base. This move not only strengthens Sendsprint’s market presence but also contributes to the broader goal of enhancing financial inclusion for Africans both at home and abroad.
