Digital brokerage firm that allows users to invest in U.S. stocks, and ETFs, Bamboo, has cited surging demand for equities listed on the NGX as the reason for launching Nigerian stocks on its platform.
The company’s CEO, and Co-Founder, Richmond Bassey, disclosed this in a chat with Nairametrics. Bamboo, which is operating with a digital sub-broker license from the Securities and Exchange Commission (SEC) having Nigerian stocks on the platform would allow young Nigerians to fully participate in the Nigerian capital market.
With the launch, Bamboo said it will be offering local stocks, including from blue chip corporations like Guaranty Trust Holding Company Plc, MTN Nigeria, and Dangote Cement.
The company said the move is to attract a new type of retail investor who is digitally savvy and expects a seamless user experience in buying Nigerian stocks as they did with U.S. stocks.
Explaining why the company decided to introduce Nigerian stocks on its platform, Bassey, said,
Sharing demographics of the platform’s users, Bassey disclosed that 30% of Bamboo users are Gen Zs, while 60% are millennials. He added that 8% of the platform users are Gen X while 2% are boomers.
According to Bamboo, to date, most of the active NGX accounts are owned by people who are more than 50 years old.
But with the digital platform, it said younger retail investors will be able to benefit from the NGX’s unbeatable financial returns and diversify their portfolios from USD-denominated assets.
In 2023, the NGX grew by 45.9% to outpace inflation and outperform the US stock market. In January 2024, the NGX was the world’s best-performing stock exchange and it has returned 31% YTD.
Bamboo, a Nigerian brokerage app that lets Africans buy and trade US stocks in real-time secured a $15 million Series A funding round to accelerate its growth across the African market.
The funding round was led by Greycroft and Tiger Global and also it saw participation from Motley Fool Venture, Chrysalis Capital, Y-Combinator’s Michael Seibel and others.
In 2022 when it raised the funds, it announced that the money would be used to support expansion into new markets and to launch additional products. Part of the funds would also be allocated to developing the company’s tech infrastructure to facilitate easier withdrawals.