A Nigerian Fintech startup Grey has picked Kenya as its hub in an effort to expand operations in the East African Community market.
This follows $2 million seed funding it raised to expand in the East African Market as it seeks opportunities in Uganda and Rwanda in the near future.
Currently, the firm’s platform is live in Kenya and Tanzania with over 300, 000 users.
Its Chief Executive Officer AIdorenyin Obong said opening offices in Kenya will help the firm navigate its planned operations in other countries within the East African Community.
“Kenya’s diaspora remittance is very vibrant as remittance inflows to Kenya have increased tenfold in the last 15 years reaching an all-time record of USD 3,718 million. This phenomenal growth points to the importance of remittances as a source of foreign exchange to the country, equivalent to more than 3 per cent of Kenya’s GDP,” said Obong in a press statement.
Founded in 2021, Grey, a Y-combinator-backed fintech startup, offers a unique international money transfer service that enables its users to send and receive international payments quickly without restrictions.
Grey enables its customers to have virtual international bank accounts and cards for free and enjoy a seamless foreign payment process.
The company also offers conversion directly to your local currency so that you can spend it easily on the app.
It allows users to receive foreign payments in their preferred foreign currency and withdraw directly to mobile money or their local bank account.
According to a World Bank report released last year, Kenya has been ranked among Africa’s top three recipients of diaspora remittances behind Nigeria and Ghana.
Moreover, Kenya’s Gig economy is on the rise, with the growth of digital platforms that connect workers and traders to potential customers.
A 2022 report by Mercy Corps on the gig economy is showing that the Kenyan online gig economy is valued at $109 million and employs about 36,573 workers.
This is estimated to grow at an annual rate of 33 per cent, with the total size reaching $345 million and employing 93,875 workers by end of 2023.
“More Kenyans are working remotely for companies abroad where payments tend to be tedious and expensive. Our solution allows African Freelancers to have foreign accounts and seamlessly receive money a competitive world,” he said.
Last year, the firm collaborated with Cellulant as the company’s payments processor powering its payouts to thousands of Grey’s customers and Moringa School to increase awareness and empower digital nomads on financial literacy in collaboration with Safaricom, Antler and Nairobi Garage.