In addition, the company has introduced its remittance payment service, Coins by Bamboo, which facilitates money transfers from the diaspora to Africa. This service aims to alleviate the burden of high cross-border fees by providing fee-free transfers and favorable exchange rates.
"With a significant number of Africans now living abroad, there is a strong desire to invest back home. However, the complexities and high fees often deter them. We aim to tackle these challenges, which is why we are launching Coins," stated Richmond Bassey, co-founder and CEO of Bamboo.
The decision to expand into Canada is driven by business considerations. In 2022, Nigeria ranked as the fourth-largest source of immigrants to Canada, with 22,085 Nigerians settling in the country.
"Insights indicate that Canada is one of the top destinations for our users, following the UK. This suggests a growing demand for our app in Canada before we explore the UK and other markets," Bassey noted.
Founded in 2019 by Richmond Bassey and COO Yanmo Omorogbe, Bamboo has experienced notable success since its launch in Nigeria in 2020. In 2022, the company secured $15 million in funding from American venture capital firms Greycroft and Tiger Global. Bamboo reports a user base of 500,000.
With its remittance service, Bamboo is entering a competitive landscape dominated by established players such as Grey Finance, Lemfi, Kyshi, and Nala. "The remittance market is vast, and I believe no single entity can address all its challenges. The distinction lies in the objectives and vision of the company," Bassey remarked.
While these competitors typically earn revenue through transaction fees and commissions, which often involve fluctuating exchange rates for currency conversions, Coins by Bamboo will provide customers with fee-free transfers and competitive exchange rates..
This marks the initial phase in our efforts to address a challenge that will benefit the diaspora. It serves as a stepping stone as we develop a range of products aimed at supporting Africans globally. Considering the costs and potential of providing transaction-free services through Coins by Bamboo, we are pleased to offer this option, Bassey stated.
Additionally, Bamboo has collaborated with charitable organizations such as the Women at Risk International Foundation (WARIF) and Chess2Slums, enabling users to make direct donations through the Coins by Bamboo application.