Bamboo, the Y Combinator-backed investment app that enables Africans to buy and trade both local and international stocks, is set to expand its operations to Canada after securing the country’s Money Service Business (MSB) license. In addition to its investment services, Bamboo will introduce a new remittance payment service called Coins by Bamboo. This product aims to facilitate money transfers from the African diaspora back to the continent, offering fee-free transfers and competitive exchange rates to reduce the high costs typically associated with cross-border transactions.
Richmond Bassey, Bamboo’s co-founder and CEO, explained the motivation behind this new service;
With many Africans now living abroad, there is a strong desire to invest back home. However, complexity, high commissions, and fees often discourage this. By addressing these pain points, we are offering Coins.
Bamboo’s decision to expand to Canada is strategic. In 2022, Nigeria was the fourth-largest source of immigrants to Canada, with 22,085 Nigerians moving to the country. Bassey noted, “Based on insights, one of the countries our users have emigrated to the most is Canada, with the UK being at the top of the list. This means there is significant potential for our app in Canada before we expand to the UK and other markets.”
Founded in 2019 by Richmond Bassey and COO Yanmo Omorogbe, Bamboo has achieved notable success since its launch in Nigeria in 2020. In 2022, the company raised $15 million in a funding round led by American venture capital firms Greycroft and Tiger Global. Bamboo currently boasts 500,000 users.
Entering the competitive remittance market, Bamboo will face established players like Grey Finance, Lemonade, Kyshi, and Nala. Bassey commented on the market dynamics, saying, “The remittance market is huge, and no single player can solve all its problems. The difference lies in the goals and what each company aims to achieve.”
Unlike other companies that primarily generate revenue from transaction fees and commissions, often including varying exchange rates for currency conversions, Coins by Bamboo will offer fee-free transfers and competitive exchange rates.
This is just the first stage for us to solve a problem that will be useful in serving the diaspora. It is a means to an end; we are building a set of products that will support Africans everywhere. When we look at the cost and opportunities for offering Coins by Bamboo transaction-free, we are satisfied with offering the service that way.
Richmond Bassey
Bamboo has also partnered with charitable organizations such as the Women at Risk International Foundation (WARIF) and Chess2Slums, allowing users to make direct contributions via the Coins by Bamboo app.
Following its expansion into Ghana in 2022, Bamboo added Nigerian stocks to its platform in May 2024. In June 2024, Bamboo commenced operations in South Africa, enabling users to invest in U.S. stocks directly from their smartphones. This expansion was made possible by acquiring a financial services provider license from the South African Financial Sector Conduct Authority (FSCA).
