Nala, a Tanzanian fintech startup, raised $40 million in a Series A round led by Acrew Capital, marking one of the largest such deals in Africa. The oversubscribed round saw participation from DST Global, Norrsken22, HOF Capital, and several prominent angel investors. The funds will support Nala’s global expansion, focusing on scaling its remittance business into Asian and Latin American markets.

• Nala's Expansion: Initially providing local money transfers in Tanzania, Nala now enables remittances from the EU, UK, and US to 11 African markets. The integration with services like M-Pesa allows direct bill payments into mobile wallets.
• B2B Platform - Rafiki: Launched in March, Rafiki serves global businesses making payments to and from Africa, integrating directly with banks and mobile money providers. This ensures reliable, low-cost payments and improves service availability for Nala’s consumer app.
• Global Growth Plans: CEO Benjamin Fernandes emphasized that the new funding will enhance infrastructure, supporting reliable and cost-effective payments. Nala aims to build a robust payments ecosystem beyond Africa and reach 500,000 customers soon.
• Market Opportunities: The World Bank predicts a 1.5% growth in remittance flows to sub-Saharan Africa, with similar trends in other regions. Nala’s focus on reducing transaction costs makes it competitive in the growing remittance market.
• Investor Confidence: Acrew’s Lauren Kolodny highlighted Nala’s potential to lead in remittances for Africa's youth, expected to represent 35% of the global youth population by 2050.

Highlights:

• Raised $40 million Series A led by Acrew Capital
• Expansion into B2B payments and global remittance services
• Integrates with 249 banks and 26 mobile money services in 11 African markets
• Plans to enter Asian and Latin American markets
• Achieved profitability and aims to cross 500,000 customers
• Emphasizes low-cost, reliable payments through its platform Rafiki

Nala's growth is a testament to the potential of African fintech companies, demonstrating how innovative solutions can address unique market challenges and attract significant international investment. 🌍💼

By maintaining a focus on reliability and cost reduction, Nala sets a new standard in the fintech industry, promising to benefit both consumers and businesses with its advanced payment solutions.

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