Sendsprint buys Nobel Financial Inc. to up ante in the US

Sendsprint, a burgeoning international payment and remittance startup, has bought up Nobel Financial Inc., a well-established California-based global remittance platform. The move is part of its expansion play within the United States, positioning it to cater to a broader market. 

Founded in 2014, Nobel Financial Inc. has built a robust platform that offers 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 over a million transactions, enabling customers to send money and in-kind gifts to recipients the world over. This track record makes it an asset for Sendsprint’s American penetration efforts.

The remittance landscape to Africa has seen immense growth. Flows reached $100 billion in 2022, outstripping both Official Development Assistance (ODA) and Foreign Direct Investment (FDI). This increase is attributed to several factors, including increased migration and improved financial conditions among the African diaspora. 

However, the cost of sending money to Africa remains high, with some service providers charging up to 8.5 percent of the amount sent. Sendsprint’s acquisition of Nobel positions it to address this challenge by offering fast, secure, and low-cost transfers.

Sendsprint’s services, comprising transactions processed within 30 minutes and advanced security measures such as two-factor authentication and real-time transaction monitoring, are designed to make remittances more accessible and affordable. 

Additionally, its partnership with over 3,000 retailers in Africa, including major names like Shoprite and Jumia, enables users to send gift cards, an indicator of diversified offerings and meeting the needs of its customers. It currently has ops in Nigeria, Ghana, Kenya, South Africa, and the United Kingdom, and will now be able to offer its services to users in the United States.

The acquisition brings onboard Nobel Financial’s Chief Compliance Officer, Scott McClain, who will join Sendsprint as Chief Compliance Officer. McClain’s 20 years of experience in the US regulatory environment will be instrumental in ensuring compliance as operations are expanding across more states in the market.

Damisi Busari, an ex-Flutterwave executive turned founder and CEO of Sendsprint, emphasized the value Nobel Financial brings to the table and the opportunity the US market presents. Her vision is to leverage the product’s people-focused technology and nuanced understanding of US-based Africans.

Sendsprint’s journey began earnestly in July 2022 with a focus on the UK, where it targeted the 1.7 million Africans in the diaspora. Offering a $5 flat transfer fee, it set out as a cost-effective alternative to traditional remittance services.

Marrying ranks with Flutterwave, Africa’s highest-valued startup, bolstered its capabilities. The tie-up enabled compliance with regulations across multiple countries, expanding its reach.

This news comes a month after NALA, a Tanzania-based remittance startup with operations expanding across the world, raised a record $40 million in Series A to tackle the [same] high fees prevalent in the industry.