Sendsprint has completed the acquisition of Nobel Financial Inc. for an undisclosed fee. Damisi Busari, an ex-Flutterwave executive, founded the startup in 2022 with the promise of facilitating transfers for a flat fee of $5.
The startup says it processes transfers within 30 minutes and now has operations in Nigeria, Ghana, Kenya, South Africa, and the United Kingdom. The acquisition of Nobel Financial ensures it can offer its services to users in 16 American states.
"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.
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, aided by increased migration and improved financial stability among Africans in the diaspora.
Despite this, the cost of sending money to Africa remains high, with fees rising up to 15% of the transaction value, depending on the service provider and corridor. In response, innovative startups like Lemfi, Sendsprint, and TransferGo have emerged to tackle this challenge.
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.
Regulatory compliance has been a hot-button topic for startups in recent years, and the acquisition of Nobel Financial will help Sendsprint in that regard.
Nobel Financial's Chief Compliance Officer, Scott McClain, will join Sendsprint in the same role, along with members of his team. Sendsprint declined to comment on why McClain is the only member of the executive team it would absorb.
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