Africa’s startup culture is flourishing, and the recent discovery of a tech-savvy population has turned it into a magnet for entrepreneurs and investors alike.
Fintech is assisting finance in making strides forward, but only when founders are able to interact with investors.
Bamboo, a Nigerian brokerage app that allows Africans to purchase and trade US equities in real-time, has acquired a US$15 million Series A fundraising round to expedite its expansion, expand into other countries, and create more products as a result.
Greycroft and Tiger Global led the US$15 million Series A round, which included support from Motley Fool Ventures, Saison Capital, Chrysalis Capital, and Y-Michael Combinator’s Seibel, and others.
Bamboo intends to use the funds to boost its expansion by concentrating solely on expanding into new areas and developing new goods.
More than 50,000 Ghanaians have signed up for the Bamboo waitlist since the company revealed plans to start in the country in April 2021.
The startup, which debuted in January 2020, is an investment platform that gives Africans proper access to dollar-denominated assets through its platform.
Customers can fund their account with their dollar or country’s currency balance and begin trading in equities virtually immediately.
Bamboo has around 300,000 accounts in Nigeria thus far. However, asset managers, fintech startups, and other customer platforms and financial institutions can use an API solution to connect Bamboo’s API and provide worldwide access to their customers.
Fintech firms in Africa have the potential to address some of the continent’s most pressing issues, such as financial exclusion and a lack of fundamental financial services.
However, when it comes to funding and growing, these potential businesses confront enormous challenges. It’s not an easy task.
A shortage of funds is one of the most significant hurdles. Banks are wary of cooperating with fintech companies that challenge existing business models, and incumbents are frequently hesitant to take chances, making it difficult for small businesses without a proven revenue stream to secure funds. This is when venture capitalists (VCs) enter the picture.
In comparison to other parts of the world, Africa has traditionally lagged behind when it comes to fintech. However, with continuous and judicious investments in technology, this could change.
Bamboo’s aim with this venture is to provide easy, rapid, and reliable access to global investment opportunities for Africans and their wealth managers, allowing them to make meaningful profits.
Bamboo is developing the digital infrastructure that powers financial services in Africa, according to the startup’s CEO and co-founder Richmond Bassey, so that if you’re investing in international capital markets from Africa, you’ll be doing so utilizing Bamboo, either directly or indirectly.
Bamboo also wants to make it as easy as possible for African diaspora investors to find the greatest investment possibilities on the continent. The business is enthusiastic about the progress it has made so far with local regulators in making this happen.
Finally, modern-day Africa faces significant challenges in terms of financial inclusion. Fortunately, many African fintech startups have developed to address this expanding demand on the continent, and investor funding will likely play a key part in ensuring that these businesses complete their aim of better servicing African consumers.
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