Bonto Kenya, a licensed money remittance provider (MRP), has shut down less than 3 years after entering the market. The fintech was founded by Yoann Copreaux and officially handed back its Central Bank of Kenya (CBK) licence in August. This makes it one of the fastest closures in the sector in recent years.
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In a LinkedIn post, Copreaux explained the decision and pointed to several challenges that made the business unsustainable. These include collapsing FX margins, low remittance fees, a Tight compliance environment and an Advantage for established players.
The startup reached out to over 50 fintechs trying to sell its licence and secured five offers, but none proved viable once the CBK approval timelines and the cost of sustaining operations were factored in. “Closing was the only rational decision by a wide margin,” Copreaux noted.
Bonto’s exit shows the realities of Kenya’s remittance and FX market, where competition is high and margins are low and a resource-intensive compliance process. The legacy providers also survive on long-standing relationships that make it harder for new players to attract a sizeable number of customers. To any startup eyeing the remittance or FX market, keep in mind that achieving scale fast is important, but even with that, margins may be low to support sustainable growth. The credit, embedded finance or SME-focused verticals may have better opportunities for new players to build a stronger foundation.
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