Introduction
Sendsprint, a cross-border payments startup operating in the UK, Ghana, Kenya, South Africa, and Nigeria, has announced the acquisition of Nobel Financial Inc., a US-based remittance company, for an undisclosed amount. This strategic move aims to expand Sendsprint’s reach by enabling money transfers and gift-sending from customers in 16 US states.
A Significant Opportunity in the US Market
"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," said Damisi Busari, CEO and founder of Sendsprint.
Leadership and Compliance Integration
As part of the acquisition, Nobel Financial Inc.’s Chief Compliance Officer, Scott McClain, will join the Sendsprint team, maintaining his role as Chief Compliance Officer. This integration ensures compliance and regulatory standards are upheld as Sendsprint expands its operations.
Competing in a Dynamic Remittance Market
Launched in 2022, Sendsprint is carving out its niche in the competitive remittance market, which includes established players like Western Union and MoneyGram, and new entrants such as LemFi and Leatherback. Sendsprint distinguishes itself by charging a $5 flat fee for all transactions. Additionally, the company partners 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 across the continent.
Nobel Financial Inc.: A Brief Overview
Founded in 2014, Nobel Financial Inc. provides international remittance services from the USA to over 32 countries across Africa, Latin America, Asia, and the Middle East. The company also offers unique in-kind gift services, enabling users to send items like bags of rice and other essentials to recipients in Africa.
The Growing Remittance Landscape in Africa
The acquisition occurs at a time when remittance flows to Africa are on the rise. In 2022, remittances to the continent reached $100 billion, surpassing both Official Development Assistance (ODA) and Foreign Direct Investment (FDI). This growth is driven by increasing migration and improved financial well-being among Africans in the diaspora, particularly in the US.