- Grey’s expansion in the East African Market follows $2 million seed funding of the West African company.
- Grey CEO AIdorenyin Obong says the Kenya office will help the firm navigate its planned operations across East African Community.
- The company has also privately launched Grey Business, a borderless business banking for startups.
Nigerian Fintech startup Grey has picked Kenya as its East African hub as it expands operations into the largest economy in the East African Community. The move follows $2 million seed funding the West African company raised as it eyes Uganda and Rwanda in the near future.
Already, the firm’s platform is live in Tanzania and Kenya with over 300,000 users. Grey CEO AIdorenyin Obong says opening offices in Kenya will help the firm navigate the markets in 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 $4 billion. This phenomenal growth points to the importance of remittances as a source of foreign exchange to the country, equivalent to more than 3 percent of Kenya’s GDP,” Obong said.
Growth of digital platforms
According to a 2022 World Bank report, 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 shows that the Kenyan online gig economy is valued at $109 million and employs a total of 36,573 workers.
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It is estimated to grow at an annual rate of 33 percent, with the total size reaching $345 million. At the moment the sector is offering 93,875 workers a source of revenue.
“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 worldwide and be globally competitive,” he added.
Grey Business, a borderless business banking platform
Last year, Grey partnered with Cellulant as the company’s payments processor. The move helps powering its payouts to thousands of Grey’s customers. The company is also working with Moringa School to increase awareness and empower digital nomads on financial literacy. The programme is in collaboration with Safaricom, Antler and Nairobi Garage.
The company has also privately launched Grey Business, a borderless business banking for startups. This allows customers to get instant international payments and currency conversions for their business. Companies can also open US bank accounts online with no minimum balance, monthly fees or hidden fees.
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.
A seamless foreign payment process
Grey enables customers to have virtual international bank accounts and cards for free and enjoy a seamless foreign payment process. Users can create a foreign USD, GBP, and EUR bank account for free, send money to Europe. The platform also allows users to receive payments from over 88 countries.
The company also offers conversion directly to your local currency so that you can spend it easily on the app. Grey allows users to receive foreign payments in their preferred foreign currency. Users are also allowed to withdraw directly to mobile money or their local bank account.
Grey’s seed funding round included participation from Y Combinator, Soma Capital, Heirloom Fund, True Culture Fund, angel investors Alan Rutledge, Samvit Ramadurgam, Karthik Ramakrishnan, and other high-profile investors.