Nigerian fintech startup Gray has chosen Kenya as its East African hub as it expands into the East African Community’s largest economy.
This follows $2 million in seed funding raised by the company to expand into the East African market, with an eye on opportunities in Uganda and Rwanda in the near future.
The company’s platform operates in Tanzania and Kenya and has over 300,000 users.
Gray CEO Aidrenin Obon said the opening of the office in Kenya will help the company advance its planned operations in other East African Community countries.
“Remittances from the Kenyan diaspora have been very active, with remittances to Kenya increasing ten-fold over the past 15 years to reach a record high of $3,718 million. It highlights the importance of remittances as a source of foreign exchange for the country, worth more than 3% of GDP,” Obon said.
A World Bank report released last year ranked Kenya among the top three recipients of diaspora remittances in Africa, after Nigeria and Ghana.
Additionally, Kenya’s gig economy is booming with the rise of digital platforms that connect workers and traders with potential customers.
According to Mercy Corps’ 2022 Gig Economy Report, Kenya’s online economy is valued at $109 million and employs a total of 36,573 people.
It is estimated that by 2023, it will grow 33% annually, with a total value of $345 million and a workforce of 93,875.
“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.
In 2022, Gray partnered with Cellulant as an enterprise payment processor and partnered with Safaricom, Antler and Nairobi Garage to provide payment support to thousands of Grey’s customers and Moringa schools to increase awareness and financial literacy among digital nomads.
The company has also privately launched Gray Business, a borderless business banking service for startups where they can receive instant international payments and currency exchange for their business.
Businesses can also open US bank accounts online with no minimum balance, monthly fees or hidden fees.
Founded in 2021, Gray is a Y Combiner-backed fintech startup offering a unique international money transfer service that allows users to send and receive international payments quickly and without restrictions.
Gray allows its customers to use virtual international bank accounts and cards for free and enjoy a seamless foreign payment process.
Users can open a foreign dollar, pound and euro bank account for free, send money to the UK and Europe and receive payments from over 88 countries.
The company also offers direct conversion to local currency so you can easily spend in the app.
