An investment app called Bamboo, supported by Y Combinator, is now expanding to Canada following the acquisition of the country’s Money Service Business (MSB) licence.
The company has introduced a remittance payment service called Coins by Bamboo. This service aims to facilitate diaspora money transfers to Africa by offering fee-free transfers and competitive exchange rates to reduce high cross-border fees.
According to Richmond Bassey, Bamboo’s co-founder and CEO, many Africans living abroad wish to invest back home but are discouraged by complexities and high fees. Addressing these challenges is a key focus for the company through the introduction of Coins.
The decision to expand to Canada was strategic due to the significant number of Nigerian immigrants in the country. This move aligns with insights showing a high number of Bamboo app users have emigrated to Canada, making it a promising market before entering other regions.
Established in 2019 by Richmond Bassey and COO Yanmo Omorogbe, Bamboo has experienced success since its launch in Nigeria in 2020. In 2022, the company raised $15 million in funding led by American venture capital firms Greycroft and Tiger Global, boasting a user base of 500,000.
Bamboo’s entry into the remittance market will bring competition among established players like Grey Finance, Lemfi, Kyshi, and Nala. Bassey believes that while the market is vast, the unique goal and approach of each company set them apart.
Unlike competitors who rely on transaction fees and commissions, Coins by Bamboo will offer customers fee-free transfers and competitive exchange rates for currency conversions, aiming to address the needs of the diaspora effectively.
Bassey emphasized that this launch is just the beginning of a broader effort to cater to the diaspora’s financial needs. By providing transaction-free services, Bamboo aims to build a suite of products that support Africans globally.
Bamboo has also collaborated with charitable organizations like the Women at Risk International Foundation (WARIF) and Chess2Slums, allowing users to make direct contributions through the Coins by Bamboo app.
Following its expansion into Ghana in 2022, Bamboo added Nigerian stocks to its platform in May 2024 and commenced operations in South Africa in June 2024, enabling users to invest in U.S. stocks through their smartphones after acquiring a financial services provider license from the South African Financial Sector Conduct Authority (FSCA).