Sendsprint, a startup that specializes in cross-border payments and operates in several African countries as well as the UK, has recently made a significant move by acquiring Nobel Financial Inc., a remittance company based in the United States. The exact amount of the acquisition has not been disclosed, but it is expected to open up new opportunities for Sendsprint in the US market.
With this acquisition, Sendsprint will now be able to provide money transfer and gift-sending services to customers in 16 US states. This expansion marks a major milestone for the company, as it aims to tap into the vast potential of the US market. Damisi Busari, the CEO and founder of Sendsprint, expressed enthusiasm about the acquisition, highlighting the company’s commitment to leveraging its technology and understanding of the African diaspora to succeed in the US.
As part of the deal, Scott McClain, the Chief Compliance Officer of Nobel Financial Inc., will be joining Sendsprint in the same role. This move is expected to strengthen Sendsprint’s compliance operations and ensure that the company meets regulatory requirements in the US market.
Sendsprint, which was established in 2022, faces stiff competition in the remittance sector from established players like Western Union and MoneyGram, as well as newer entrants such as LemFi and Leatherback. Despite this, the company has been able to differentiate itself by charging a flat fee of $5 for all transactions. Additionally, Sendsprint has built a network of over 3,000 retail partners in Africa, including popular brands like Shoprite, Jumia, and Cake City, allowing users to send gift cards to recipients on the continent.
On the other hand, Nobel Financial Inc., founded in 2014, has been offering international remittance services from the US to various countries in Africa, Latin America, Asia, and the Middle East. The company also enables users to send physical gifts such as bags of rice to recipients in Africa, catering to the needs of customers who prefer in-kind transfers.
The acquisition of Nobel Financial Inc. by Sendsprint comes at a time when remittances to Africa are on the rise, surpassing both Official Development Assistance (ODA) and Foreign Direct Investment (FDI) in 2022. The growth in remittances from the US to Africa can be attributed to increased migration and improved economic conditions among Africans living abroad.
In conclusion, the acquisition of Nobel Financial Inc. represents a strategic move for Sendsprint as it seeks to establish a stronger presence in the US market and build on its success in Africa and other regions. The company’s focus on technology, compliance, and customer-centric solutions will likely drive its growth and competitiveness in the global remittance industry.
