Fintech
Tanzanian Fintech NALA Raises $40M Series A to Grow B2B Payment Platform
The news:
- NALA, a Tanzanian-based remittance startup that is expanding its offerings to add a new B2B payments platform, has raised $40 million in capital in a landmark deal that TechCrunch classified among the biggest Serie A shifts in Africa.
- Benjamin Fernandes, founder and CEO of NALA, said that the new investment, which comes after a $10 million in initial capital in 2022will be allocated to the company’s growth plans, mainly to the development of Rafiki, its new B2B payment platform.
- Acrew Capital, a San Francisco-based venture capital (VC) firm, led the oversubscribed Series A round, with participation from DST Global, Norrsken22, and HOF Capital.
Existing investors including Amplo and NYCA Partners, as well as several angel investors, such as fintech founders Ryan King of Chime and Vlad Tenev of Robinhood, also invested.
Currently, through its consumer app, NALA allows customers in the European Union (EU), the United Kingdom (UK) and the United States (US) to send money via 249 banks and 26 mobile money services in 11 African markets, including NigeriaTanzania, Kenya and Rwanda.
In Kenya, for example, NALA has in pairs with mobile money services like M-PESA to allow senders to pay bills directly to local mobile wallets from abroad.
According to Fernandes, NALA’s decision to add payment options was driven by user demand for more control over their money.
The fintech startup is promoting Rafiki, its new B2B payments platform launched in March 2024, to serve global businesses making payments to and from Africa.
Commenting on the new capital, Fernades noted that the investment will enable NALA to go beyond remittances, extending its reach beyond Africa and building a robust payments ecosystem.
“We are reinvesting this money into improving our infrastructure, ensuring reliable and low-cost payments for everyone. With the launch of our payments systems and the expansion of our Rafiki B2B platform, we are not just talking about change, we are building it,” said Fernandes.
NALA was launched in 2017 with the intention of providing local money transfers in Tanzania. However, in 2021, the fintech company changed course to enable remittances from abroad.
The startup, which said it has already achieved profitability, noted that its consumer business now accounts for more than 90% of its revenue and is on track to surpass 500,000 customers.
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The fintech said Rafiki is also expanding its customer base, with early adopters including TransferGo, a UK-based fintech that uses Rafiki for Africa payments. In March 2023, NALA announced that obtained a license to offer payment systems from the Bank of Tanzania, opening up financial technology to directly integrate with banks and mobile money providers such as M-PESA.