Sendsprint, a rapidly growing international payment and remittance startup, has acquired Nobel Financial Inc., a well-established global remittance platform based in California. This strategic move is aimed at expanding Sendsprint’s presence in the United States and reaching a broader market.
The remittance sector, particularly in Africa, has experienced significant growth, with flows reaching $100 billion in 2022. This surge has surpassed both Official Development Assistance (ODA) and Foreign Direct Investment (FDI), driven by factors such as increased migration and improved financial conditions among the African diaspora. Despite this growth, the cost of sending money to Africa remains high, with some service providers charging up to 15% of the amount sent. Sendsprint’s acquisition of Nobel aims to address this challenge by offering fast, secure, and affordable transfers.
Founded in 2014, Nobel Financial Inc. has developed a solid platform offering remittance services from the US to over 32 countries across Africa, Latin America, Asia, and the Middle East. Over the past decade, it has facilitated more than a million transactions, enabling customers to send money and in-kind gifts to recipients worldwide. This strong track record makes it a valuable asset for Sendsprint as it seeks to establish a foothold in the American market.
Sendsprint’s services are designed to make remittances more accessible and cost-effective. Transactions are processed within 30 minutes, and advanced security measures like two-factor authentication and real-time transaction monitoring ensure safety. The company’s partnership with over 3,000 retailers in Africa, including major brands like Shoprite and Jumia, also allows users to send gift cards, demonstrating a commitment to diversified offerings that meet customer needs. Sendsprint currently operates in Nigeria, Ghana, Kenya, South Africa, and the United Kingdom and will now extend its services to users in the United States.
Damisi Busari, former Flutterwave executive and now founder and CEO of Sendsprint, highlighted the value Nobel Financial brings and the significant opportunity the US market presents. She envisions leveraging Sendsprint’s customer-focused technology and deep understanding of US-based Africans to drive growth and innovation.
Read also: Tanzanian Fintech NALA Secures $40 Million Series A Funding.
The acquisition also brings Nobel Financial’s Chief Compliance Officer, Scott McClain, into the Sendsprint team. With 20 years of experience in the US regulatory environment, McClain will play a key role in ensuring compliance as Sendsprint expands its operations across more states.
Sendsprint launched in July 2022 with a focus on the UK market, targeting the 1.7 million Africans in the diaspora with a $5 flat transfer fee, positioning itself as a cost-effective alternative to traditional remittance services. Its partnership with Flutterwave, Africa’s highest-valued startup, has strengthened its capabilities, enabling compliance with regulations across multiple countries and expanding its reach.
This acquisition comes on the heels of NALA, a Tanzania-based remittance startup, raising a record $40 million in Series A funding to address similar challenges in the industry, underscoring the competitive and rapidly evolving nature of the global remittance market.