Tanzanian Fintech Nala Raises $40M in Series A After 10X Revenue Growth, ~500K User Growth – BitKE

In one of the largest Series A rounds in African tech history, pan-African remittance company Nala has raised $40 million in a Series A round, CEO Benjamin Fernandes announced.

The round was led by San Francisco-based venture capital firm Acrew Capital, with participation from:

• Global Daylight Saving Time
• Italian:
• HOF Capital,

and existing investors including:

A number of angel investors, including founders of fintech companies:

• Ryan King of Chime and
• Vlad Tenev

Robinhood has also made investments.

Nala, what raised $10 million in 2022, plans to use the funds to enhance its existing infrastructure, as part of plans to expand its remittance services globally, particularly to other emerging markets such as Asia and Latin America.

“This $40 million funding round marks a pivotal moment for Nala. It will enable us to go beyond remittances and extend our reach beyond Africa by building a robust payments ecosystem. We are reinvesting this money into improving our infrastructure, ensuring reliable and low-cost payments for all,” Fernandes said in an interview.

“With the launch of our payment systems and the expansion of our B2B platform, Rafiki, we are not just talking about change, we are building it. We have some bold and ambitious plans, give us a couple of years.”

In January 2024, the fintech introduced Rafiki, a single API for global businesses to make payments in Africa. According to Nala, the B2B platform is designed to:

• Ensure reliability
• Manage treasury directly
• Better error mapping
• Reduce costs for the user and
• Simplify payments

See also

“For Rafiki, live customers on Nala range from global payroll providers like Cadana to global remittance companies like TransferGo and global banks making cross-border payments. The goal is to enable institutions and financial services to make cross-border payments,” Fernandes said.

According to Fernandes, ensuring service delivery has been the driver of the startup’s growth in its consumer business, which currently accounts for more than 90% of its revenue.

Nala is on track to surpass 500,000 customers and has already achieved profitability.

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