endsprint, a burgeoning cross-border payments startup operating in the UK, Ghana, Kenya, South Africa, and Nigeria, has acquired US-based remittance company Nobel Financial Inc. The acquisition, for an undisclosed amount, marks Sendsprint’s strategic entry into the lucrative US market, enabling it to offer money transfers and gift-sending services from customers in 16 US states.
Expanding into the US Market
Damisi Busari, CEO and founder of Sendsprint, expressed enthusiasm about the acquisition. “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. This move aligns with Sendsprint’s mission to provide seamless financial services tailored to the African diaspora.
Integration of Compliance Expertise
As part of the acquisition, Nobel Financial Inc.’s Chief Compliance Officer, Scott McClain, will join the Sendsprint team, ensuring regulatory adherence and robust compliance frameworks in the expanded operational landscape.
Sendsprint’s Competitive Edge
Launched in 2022, Sendsprint operates in the competitive remittance market alongside established players like Western Union and MoneyGram, as well as new entrants like LemFi and Leatherback. Sendsprint distinguishes itself by charging a flat $5 fee across all transactions. Additionally, the company has partnered with over 3,000 retailers across Africa, including prominent names like Shoprite, Dapper Monkey, Jumia, and Cake City, allowing users to send gift cards to recipients in Africa.
Nobel Financial’s Legacy and Services
Founded in 2014, Nobel Financial Inc. offers international remittance services from the USA to over 32 countries across Africa, Latin America, Asia, and the Middle East. The company also facilitates in-kind gifts such as bags of rice and other essentials to recipients in Africa, enhancing its value proposition in the remittance market.
Market Context and Growth
The acquisition is timely, as remittance flows to Africa continue to grow. In 2022, remittances to the continent reached a record $100 billion, surpassing both Official Development Assistance (ODA) and Foreign Direct Investment (FDI). The increase in remittances from the US to Africa is driven by rising migration and improved financial wellbeing among Africans in the diaspora, presenting a substantial market opportunity for Sendsprint.
Conclusion
Sendsprint’s acquisition of Nobel Financial Inc. represents a significant step in its expansion strategy, leveraging Nobel’s established US presence to enhance its cross-border payment solutions. This move not only broadens Sendsprint’s service offerings but also strengthens its competitive position in the growing remittance market.
By integrating Nobel Financial’s compliance expertise and extensive service network, Sendsprint is poised to offer enhanced value to its customers, ensuring efficient and secure financial transactions across borders.