NALA, a fintech startup with Tanzanian roots, has secured a significant $40 million Series A funding round, setting the stage for substantial global expansion and diversification of its remittance and B2B payment services.

Funding Details

The oversubscribed round was led by San Francisco-based Acrew Capital, with strong backing from prominent investors such as DST Global, Norrsken22, and HOF Capital. Existing investors Amplo and NYCA Partners reaffirmed their commitment by participating in this round. The funding attracted notable angel investors, including fintech luminaries Ryan King of Chime and Vlad Tenev of Robinhood.

Company Evolution

NALA's journey began in 2017 when founder Benjamin Fernandes initially focused on facilitating local money transfers within Tanzania. Recognizing broader opportunities, the company pivoted in 2021 to enable international remittances, marking the beginning of its global ambitions.

Current Offerings

Today, NALA's consumer app empowers users in the EU, UK, and US to send money across a vast network of 249 banks and 26 mobile money services in 11 African markets. The company has also ventured into the B2B sector with the launch of Rafiki, its payments platform, in March 2024, aimed at serving global businesses engaging in cross-border transactions with Africa.

Strategic Expansion

With this new influx of capital, NALA is poised to extend its reach beyond Africa, eyeing opportunities in Asian and Latin American markets. The funding will fuel the enhancement of NALA's infrastructure, ensuring the delivery of reliable, low-cost payment solutions on a global scale.

Financial Trajectory

NALA's growth story is underscored by its reported profitability, with the consumer remittance business currently driving over 90% of its revenues. The company is on track to surpass the milestone of 500,000 customers, reflecting its strong market position and user trust.

Regulatory Milestones

In a significant development, NALA obtained a license from the Bank of Tanzania in March 2023 to offer payment systems. This regulatory approval paves the way for direct integration with banks and mobile money providers, enhancing NALA's service capabilities and market reach.

Future Outlook

As NALA embarks on this new chapter, the focus remains on building a comprehensive payments ecosystem. The company aims to solidify its position as a key player in the global remittance and B2B payments landscape, with a particular emphasis on serving the African diaspora and facilitating business transactions on the continent.

NALA's successful Series A funding round marks a transformative moment for the company. With substantial financial backing and a clear vision for growth, NALA is well-positioned to revolutionize cross-border financial services, bridging Africa with the global economy and setting new standards in the fintech industry.