Bamboo Expands to Canada, Launching Fee-Free Remittance Service for African Diaspora

Bamboo, the Y Combinator-backed investment app that empowers Africans to trade both local and global stocks, has expanded into Canada after securing a Money Service Business (MSB) license. Alongside its core investment services, Bamboo is launching Coins by Bamboo, a new remittance service that offers fee-free transfers and competitive exchange rates to streamline money transfers from the African diaspora to the continent.

CEO and co-founder Richmond Bassey shared that Coins by Bamboo is designed to overcome common remittance challenges, such as high commissions and complex processes, that often discourage cross-border financial support and investment. “With many Africans now living abroad, there’s a strong desire to invest back home,” he explained. “We’re addressing these pain points to make it easier.”

Bamboo’s move into Canada aligns with its growth strategy, as the country saw over 22,000 new Nigerian immigrants in 2022, ranking fourth in immigration sources. “Canada has significant potential for us,” said Bassey, “and we see it as a springboard before expanding to other key markets like the UK.”

Founded in 2019 by Bassey and COO Yanmo Omorogbe, Bamboo has rapidly scaled since its Nigerian launch in 2020. The app has since secured $15 million in funding from Greycroft and Tiger Global and grown its user base to over 500,000.

In the competitive remittance space, Bamboo will face rivals like Grey Finance, Lemonade, Kyshi, and Nala. Bassey noted, “The market is huge; no single player can solve all its problems. Each company has unique goals and priorities, and ours focuses on ease and affordability.”

Unlike many competitors that rely on transaction fees and variable exchange rates, Coins by Bamboo emphasizes fee-free transfers with competitive rates. Bassey highlighted that this strategy is part of Bamboo’s long-term goal: “We’re building a suite of products to support Africans globally. Starting with transaction-free remittance is just the beginning.”

Bamboo also partners with charitable groups such as the Women at Risk International Foundation (WARIF) and Chess2Slums, allowing users to contribute directly through Coins by Bamboo.

After expanding into Ghana in 2022, Bamboo has added Nigerian stocks (as of May 2024) and launched U.S. stock trading in South Africa in June 2024, made possible by a Financial Sector Conduct Authority (FSCA) license.