Bamboo, one of the top online brokerage companies in Nigeria, has entered Ghana, making it the first transnational brokerage app in West Africa. The more than 50,000 people on Bamboo Ghana’s waitlist will now be able to purchase and invest in stocks from US businesses like Apple Inc. and Tesla due to a collaboration with 10th Capital Investments, a registered Ghanaian company.
When Bamboo raised a series of $15 million, the company’s CEO declared that Ghana’s market was the organization’s next market at a round in January 2022. The intentions for Ghana have been realized after nine months and an additional $17.4 million raise. Bamboo said in a statement provided to TechCabal that it just obtained a No Objection Letter from Ghana’s Securities and Exchange Commission (SEC) to conduct business there, allowing it to start effectively.
“We believe strongly that all Africans should earn a return on their investments and build intergenerational wealth. That’s why we created Bamboo: we wanted to create an easy and secure way for everyday Africans to invest in the US stock market, and eventually, in all types of asset classes,” said Richmond Bassey, Bamboo CEO and co-founder.
Since their 2019 launches, Chaka, Trove, and Rise, retail investment applications that offer access to overseas assets and Bamboo, have had to contend with onerous regulatory frameworks in their native Nigeria. The Securities and Exchange Commission (SEC) of Nigeria declared these businesses illegal in April 2022 and warned capital market participants not to do business with them. Following this, Bamboo’s bank accounts were briefly frozen by Nigeria’s central bank after it was declared to be operating without a license. Despite the obstacles, Bamboo has persisted in its determination to cooperate “very closely with regulators in Nigeria” in order to guarantee the satisfaction of all parties.
Now operating in Ghana, Bamboo has committed to continue collaborating with the local SEC to create a uniform regulatory environment for the retail investing sector it is leading. The Nigerian-born company, Bamboo, guarantees consumers that all accounts can obtain insurance of up to $500,000 via the US Securities Investor Protection Corporation through its US digital investing partner, DriveWealth LLC (SIPC). Bamboo is prepared to establish retail investment as the standard in Ghana by putting rules and insurance in place.
The COO of 10th Capital Investments, Albert Asiamah, gushed over how well Bamboo’s product performed in Nigeria and praised the decision to invest there.
“We’re thrilled to work with [the Bamboo team] to bring Ghanaians the opportunity to invest in the US and eventually the local stock market. Their impeccable track record in Nigeria, stellar product and educational tools make them an ideal collaborator,” he said.
“Together with Bamboo, we’ve been able to provide investors across Africa with affordable access to the US markets. Today, we’re thrilled to extend that same access to the people of Ghana,” said John Shammas, Head of Technical Sales at DriveWealth.
“As we continue our international expansion, we look forward to empowering more customers with the tools they need to improve their financial wellbeing and engage with the markets,” he added.
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Bamboo Secures $15m in Series A, Led By Tiger Global And Greycroft
American startup capital firms Greycroft and Tiger Global led the $15 million Series A funding round for Bamboo, an investment platform that lets Nigerians purchase and trades US stocks in real-time via their smartphones or laptops. According to the business, Michael Seibel of Y-Combinator and Motley Fool Ventures, Saison Capital, Chrysalis Capital, and other investors also took part in the round.
Bamboo, which was introduced in January 2020 by CEO Richmond Bassey and COO Yanmo Omorogbe, has amassed over 300,000 accounts in Nigeria and is quickly gaining popularity with retail investors. Users have access to all stocks—roughly 6,000 different companies’ stocks—that are listed on US stock exchanges.
“Our goal is simple: we want to give Africans and their asset managers easy, fast and secure access to global investment options that will allow them to earn real returns,” Bassey said in a statement released Monday.
Bamboo stated that it intended to double down on opening up new markets and launching more products with the new capital, while Bassey informed TechCabal via email that Bamboo will be offering more asset classes and investment alternatives for its users.
“Bamboo is enabling Africans to build wealth by creating an investing platform that is helpful to both experienced investors and to those new to the stock market. We are thrilled to support the innovative, user-first approach the Bamboo team is bringing to market,” Greycroft Partner Alison Lange Engel said on the investment.
In order to give their customers access to international securities, asset managers, fintech firms, and other financial institutions can now tap into Bamboo’s API thanks to the company’s Powered by Bamboo API solution, which was introduced in 2021. The business has been testing the product with a select number of businesses, and it anticipates adding in 2022.
“Everyone building for African investors is welcome. We plan to add other products and tools that offer greater access and make global investing simpler from Africa,” Bassey said. “We’re building the technology infrastructure powering financial services in Africa.”
How Bamboo Is Making It Easier To Invest In Stocks
Investors today deal with a variety of irritating issues. Every investor needs a simple investing procedure that promotes ongoing investment and ensures they are taking calculated risks because, let’s face it, every investment involves some level of risk. Technology has provided a dependable answer to this issue through online investment platforms that enable an investor to cut out intermediaries in the form of brokers and investment houses.
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Additionally, you may monitor your portfolio and receive real-time data on your stocks’ performance without calling your broker or investment house, which could take days owing to bureaucratic procedures.
This does not, however, completely address the issue because the features and functionalities of an online platform determine whether the investor will be able to provide the simplicity of investment that every investor desires. The Bamboo app can help with this.
Through the online investment platform known as the Bamboo investment app, thousands of stocks are listed on the U.S. Stock Exchange. With straightforward features that even novice investors can easily comprehend and utilize, it allows individuals smooth access to increasing their money. Users can open an account and make deposits using their Naira or Dollar cards or by direct bank transfers in less than 5 minutes. The objective of Bamboo is to make investing convenient for everyone.
