NALA Raises $40 Million in Series A Funding

NALA, a Tanzanian startup specializing in remittances, has secured $40 million in equity funding in what TechCrunch considers one of Africa’s largest Series A rounds to date. This substantial investment follows a $10 million seed round in 2022 and is earmarked for expanding its services, particularly the launch of Rafiki, a new B2B payments platform.

Benjamin Fernandes, CEO of NALA, highlighted that the funding will fuel their ambitious growth strategies. Acrew Capital, a prominent VC firm based in San Francisco, led the oversubscribed Series A round. The funding round also saw contributions from major investors like DST Global, Norrsken22, and HOF Capital, along with continued support from existing backers such as Amplo and NYCA Partners, and notable fintech entrepreneurs including Ryan King of Chime and Vlad Tenev of Robinhood.

NALA currently operates a consumer app that facilitates money transfers across 249 banks and 26 mobile money services in 11 African countries, including Nigeria, Tanzania, Kenya, and Rwanda. The app serves customers in the EU, UK, and US, allowing them to send money directly into local mobile wallets and pay bills via partnerships with services like Kenya’s M-PESA.

Fernandes explained that the decision to expand into B2B payments was driven by customer demand for greater control over their finances. This move underscores NALA’s commitment to enhancing financial inclusivity and convenience across the continent.

Source: Osamu Ekhator / TechPoint Africa