Bamboo raises $15 million Series A funding

Bamboo, a Nigerian startup that allows Africans to trade stocks in the United States, has raised $15 million in Series A funding. This will allow it to grow, penetrate new markets, and create more products.

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Greycroft and Tiger Global led the latest Series A round, with participation from Chrysalis Capital and Motley Fool Ventures. Saison Capital and Y-Combinator Michael Seibel also participated.

Many Nigerians only have a few options to save or invest. The naira, Nigeria’s currency, has seen a decline in value over the years. Inflation is currently at 16%. It is therefore a good idea to invest in dollars to protect against inflation and currency declines.

Bamboo (and others like Trove, Chaka and Risevest) gives Africans an opportunity to invest US stocks. The startup is looking to expand into new markets such as South Africa, Kenya, and Ghana after two years of rapid growth. Bamboo announced in April 2021 that it would launch in Ghana. More than 50,000 Ghanaians are on the waiting list.

Bamboo intends to use the capital for its growth. It will double down on unlocking new markets, launch more products to help Africans build wealth and earn strong investment returns.

Bamboo’s CEO, Richmond Bassey, co-founder, stated that the goal of the fundraise was simple. He said that he wanted to make it easy for African asset managers and Africans to have fast, secure and easy access to global investment options which will enable them to generate real returns.

“We are building the technology infrastructure to power financial services in Africa so that if your goal is to invest in the global capital markets in Africa, you can do it using Bamboo directly or indirectly.

“We want to make it easy for African investors living abroad to find the best opportunities to invest on the continent. This is a great opportunity to work with local regulators and make it a reality.

Greycroft partner Ms Alison Lange Engel spoke at the fundraise. This reflected Greycroft’s excitement to support the user-first, innovative approach that the Bamboo team is bringing on the market.

She stated that “Bamboo is helping Africans build wealth by creating an investment platform that is useful to both experienced investors as well as those who are new to the stock exchange.”

Bamboo has grown to over 300,000. accounts in Nigeria since its January 2020 launch. Although investing in stocks is a new concept in Nigeria, nearly 75% of Bamboo users never traded stocks. Bamboo’s popularity has risen rapidly with retail investors.

Bamboo also offers B2B access through Powered By Bamboo, its API product. This allows asset managers, fintech firms, and other financial institutions access to Bamboo in order to offer their customers global securities.

Recurrent depositors accounted for 85% of all deposits on the Bamboo platform in 2021. Recurrent deposits are a sign that Bamboo users quickly gain confidence when trading US stocks.

Although Africa’s wealth management market remains underdeveloped, there is great potential. Africa is home to more than 16% of the world’s people, but they have less than 1% global wealth. This is likely to change. AfrAsia Bank predicts that Africa’s private wealth will rise by 30% to $2.6T by 2030.

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