Tanzanian fintech company NALA has announced the successful raising of $40 million in a Series A funding round. This significant investment aims to drive the company’s global growth by expanding its consumer business and developing its B2B payments platform, Rafiki.
Series A Funding Round Details
This latest funding round was led by San Francisco-based venture capital firm Acrew Capital. Other participants included DST Global, Norrsken22, HOF Capital, and existing investors such as Amplo and NYCA Partners. Additionally, notable angel investors, including fintech founders Ryan King of Chime and Vlad Tenev of Robinhood, also contributed.
NALA’s Funding History
The Series A round brings NALA’s total funding to over $50 million, following a previous raise of $10 million in 2022. The substantial financial backing highlights investor confidence in NALA’s business model and growth potential.
Company Background and Evolution
Founded by CEO Benjamin Fernandes in 2017, NALA initially focused on local money transfers within Tanzania. In 2021, the company pivoted to facilitate foreign remittances, allowing individuals in the EU, UK, and US to transfer money to 249 banks and 26 mobile money services across 11 African markets. NALA’s integration with mobile money services, such as Kenya’s M-Pesa, enables users to directly pay bills into local mobile wallets.
Expansion of Rafiki
NALA’s new B2B payments platform, Rafiki, launched in March 2024, aims to establish reliable payment infrastructure for the next billion users. Rafiki will manage treasury directly, improve error mapping, reduce costs, and streamline payouts and collections. This mirrors the impact of dLocal in Latin America and AirWallex in Asia.
Recent Achievements and Growth
Despite facing challenges, NALA has achieved significant milestones over the past few months. The company now serves nearly 500,000 customers worldwide and has increased its transaction volume by 34 times over the last 20 months. Revenue has grown tenfold in the past year, and NALA has recently become profitable and cash flow positive.
New Market Launch
In August 2023, NALA expanded its services by launching payment capabilities from the UK and Europe to Nigeria. This move aligns with the company’s strategy to broaden its reach and enhance its service offerings.
Conclusion
NALA’s recent funding and strategic initiatives underscore its commitment to accelerating remittance services and building robust payment infrastructure across Africa and beyond. The company’s continued growth and innovation position it well to meet the financial needs of a rapidly evolving market.