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In an ever-globalizing world, remittances have become a critical lifeline for many emerging economies. These financial flows, sent by migrants to their home countries, help support families, fund education, and stimulate local businesses. However, the remittance market has faced numerous challenges, from high transfer fees to limited access in remote areas. Enter Pesa, a fintech startup that is revolutionizing the way remittances are sent and received, unlocking new markets and ensuring that these vital funds continue to flow smoothly to those who need them most.

Pesa’s expansion aligns with a growing demand for efficient, affordable, and reliable cross-border remittance services. The World Bank reports that remittances to low- and middle-income countries (LMICs) have increased by 38% over the past six years, reaching $656 billion by the end of 2023. The bank anticipates further growth in 2024 and 2025, driven by digital remittance tools that reduce transaction costs and increase access to formal money transfer channels.

Pesa’s primary goal is to enable users to send money in the “most secure and fastest way possible” and to “remove borders around money,” according to Osho, the company’s CEO. The platform functions as a multi-currency wallet, allowing users to send, receive, and hold multiple currencies (currently six).

“The way we see remittance is that there shouldn’t be any disruption in your financial transactions when you move to a new country,” Osho explains. “If I move from Nigeria to Canada, I should still be able to transact back home as if I never left.”

As part of its global expansion strategy, Pesa is on the verge of launching in the U.S., having recently rolled out services across 27 European Union countries. The company also operates in the U.K. through a partnership while it works on obtaining an Electronic Money Institution (EMI) license, which will allow it to offer more affordable services, hold e-money on behalf of customers, and develop additional products.

Pesa’s growing presence will enable users in these regions to send money to its five African markets, including Nigeria and Ghana, as well as to India, which Pesa entered in March 2024. India, the world’s top remittance destination, received $120 billion last year, with projections to reach $129 billion by 2025. The country’s large migrant population makes it a critical market for Pesa’s expansion.

As Pesa continues to grow, it will face increased competition from other digital remittance companies, including Tanzania’s Nala, which recently raised $40 million in Series A funding, as well as Leatherback, Send by Flutterwave, LemFi, Eversend, and established players like Wise and Zepz.

Despite the competitive landscape, Pesa has made significant progress, achieving profitability in under two years and processing over a million transactions worth $380 million. With 60,000 users, 30% of whom are active, the company is optimistic about its impact in new markets and is planning to introduce multi-currency cards.

“We are focused on growth, completing our expansion, and integrating across all the continents we’re entering,” said Yakubu. “At that point, we’ll be generating even more revenue than we are today.”

As Pesa continues to expand its reach and refine its services, the future looks promising for the startup and the communities it serves. With a commitment to leveraging technology for good, Pesa is well-positioned to remain at the forefront of the remittance industry, ensuring that money flows freely and efficiently to where it is needed most.

In a world where digital transformation is accelerating, Pesa stands as a beacon of innovation, demonstrating the power of technology to break down barriers and create new opportunities for individuals and businesses alike. As the company grows, so too will its impact on the global remittance market, offering a brighter future for millions of people in emerging economies