Leaf Global Fintech, a company that uses a blockchain-based mobile wallet to deliver virtual banking services to vulnerable populations crossing borders in Africa, has been acquired by IDT Corp. for an undisclosed sum.
IDT is a global communications and payments company based in the United States. Its flagship product is Boss Money, which offers cross-border money transfers, focused on emerging markets. IDT gains immediate access to several African markets with this acquisition and a platform for further expansion within the Continent.
We asked Leaf Co-founder Tori Samples about the deal, and how it furthers Leaf’s mission.
"We are incredibly excited about the possibilities that come with Leaf being part of IDT,” Tori said. “IDT is entrepreneurial, innovative, and cares deeply about Leaf's markets. The acquisition will allow us to pursue new and interesting business models under the umbrella of an organization that has deep expertise in fintech, payments, and remittances."
Founded in 2017, Leaf is leveraging blockchain technology to offer a digital wallet to underserved populations in Africa. Notably, refugees, migrant workers, and small traders operating across borders.
U.S.-based Leaf operates out of Kigali and also does business in Kenya, Rwanda, and Uganda.
We also asked Tori about the deal’s timing. Why sell now? The answer, as it often does, involves the path to scale.
"Leaf has established itself with operations in three countries, proven our blockchain-based technology is solid and shown the business model is viable,” she said. “Joining IDT represents a path to scale. Growing on our own was possible but would have involved challenges that IDT has already solved. Scaling Leaf under the umbrella of the larger organization allows us to focus on the most unique aspects of Leaf and take advantage of IDT's long history in the space."
One concrete benefit Leaf customers will gain from the acquisition is the addition of money transfers to and from the United States.
"Our customers have been asking about the ability to send and receive with the United States for years. Funds from the US are a critical lifeline for many of our customers, either as an ongoing form of support or to fill a short-term gap,” Tori said. “IDT knows that market well, having been a leading provider of communication and remittance services from the US for years.”
You can check out