Bamboo: Surging demand reason for listing of Nigerian stocks on platform

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.

Demand for NGX

Explaining why the company decided to introduce Nigerian stocks on its platform, Bassey, said,

“NGX has been the most requested asset class on our platform and we believe it shows the strength of the local market and the passion that the retail investors have for the NGX. It allows users who only want to invest in Nigerian stocks to come on the platform and an opportunity for existing users to diversify.”

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.

More insights

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 said it would ensure that retail investors see the fastest trade settlement timelines and the most seamless dividend payment system available in the Nigerian capital markets.
  • Meanwhile, there have been a few other platforms allowing Nigerians to trade in local stocks. These include Trove, which allows users to invest in both local and international stocks with ease.
  • There is also Chaka, another Nigerian stock trading platform that offers a comprehensive range of investment options, among others.
  • Bamboo has over 1 million downloads on the Google PlayStore with most of its users using the application to purchase US based equities.
  • Listing Nigerian equities on its platform gives these retail users access to the Nigerian Stock Market that is largely dominated by institutional investors

Bamboo, a Nigerian brokerage app that lets Africans buy and trade US stocks in real-time has 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.

The platform wants to use the fund as support to scale across new markets in addition to launching more products as part of the fund will be channelled into developing the company’s tech infrastructure to allow for easy withdrawal.




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