NALA, a Tanzania-founded fintech startup specialising in African payments, has secured US$40 million in Series A funding to bolster its international expansion and launch its proprietary payment rails for Africa and beyond.
Founded in Tanzania, NALA facilitates secure and reliable money transfers from Europe, the UK, and the US to several African nations, including Tanzania, Kenya, Rwanda, Uganda, and Ghana. In the previous year, the company broadened its reach to the European Union (EU), incorporating 19 new countries into its roster of send countries and furthering its mission to connect Africans globally.
In the past year, NALA has demonstrated remarkable financial growth, achieving a 10x increase in revenue, reaching profitability, and maintaining positive cash flow. Over the last 20 months, the company has reported a 34x surge in transaction volume. Buoyed by these successes, NALA is poised for further growth and international expansion.
The US$40 million funding round, led by Acrew Capital with contributions from DST Global Partners, Amplo, Norrsken22, and HOF Capital, as well as angel investors such as Ryan King and Vlad Tenev, marks a significant milestone for the company. This is NALA’s second fundraising endeavour in 20 months, following a US$10 million raise from Accel, Amplo, and Bessemer Partners in 2022.
The newly acquired capital will facilitate the expansion of NALA’s consumer services beyond Africa, targeting the global migrant diaspora. Additionally, it will support the development of Rafiki, NALA’s new B2B payments platform aimed at establishing the payment infrastructure for the next billion users.
Benjamin Fernandes, founder and CEO of NALA, expressed the transformative potential of this funding round, stating, “This US$40 million funding round marks a pivotal moment for NALA. It will enable us to go beyond remittances and extend our reach beyond Africa, building a robust payments ecosystem. We’re reinvesting this money to enhance our infrastructure, ensuring reliable, low-cost payments for all. With the launch of our own payment rails and the expansion of our B2B platform Rafiki, we’re not just talking about change – we’re building it. We’ve got some bold, ambitious plans; give us a couple of years.”
NALA’s rapid growth and strategic vision underscore its commitment to revolutionising the payments landscape in Africa and providing essential financial services to the global migrant community. As the company continues to innovate and expand, it is set to play a pivotal role in shaping the future of digital payments on the continent and beyond.
