Nala, a fintech startup that began with affordable money transfers in Tanzania, has successfully raised $40 million in a Series A funding round led by San Francisco-based Acrew Capital. This round also saw participation from investors like DST Global, Norrsken22, and notable angel investors Ryan King and Vlad Tenev. The oversubscribed round highlights the strong investor confidence in Nala’s vision and potential. Expanding its presence in the fintech sector, Nala focuses on remittance services—a crucial need in Africa due to the significant diaspora populations in the EU, UK, and US. Its consumer app facilitates money transfers across 249 banks and 26 mobile money services in 11 African markets. A notable integration with Kenya's fintech giant M-Pesa allows users to pay local bills directly into mobile wallets, demonstrating Nala’s commitment to utilizing existing mobile money infrastructure.
In March 2024, Nala ventured into the B2B payments sector by launching Rafiki, a platform that integrates directly with banks and mobile money providers to address persistent challenges in the remittance industry. This expansion aligns with World Bank projections that remittance flows to sub-Saharan Africa will grow by 1.5% in 2024, reaching $54 billion. By focusing on reducing transaction costs and enhancing reliability, Nala aims to attract a larger user base and gain a competitive edge over traditional remittance platforms. The new funding will be crucial in scaling operations, as noted by Nala’s Founder and CEO, Benjamin Fernandes, who stated, “We’re reinvesting this money to enhance our infrastructure, ensuring reliable, low-cost payments for all.” Recent strategic hires, including ex-Wise staffer Andrei Klevtsov and ex-Currency Cloud executives Will Staples and Jan Philippaerts, bring valuable experience to help Nala achieve its ambitious goals. With over 90% of its revenues from its consumer arm and approaching profitability, Nala is well-positioned to create a robust payments ecosystem, benefiting both consumers and businesses.
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