Breaking News: Tanzanian Fintech Nala Raises $40 Million to Fuel International Expansion and Launch Payment Rails for Africa and Beyond
Today, we bring you news from the startup world, straight from Tanzania, where fintech company Nala has secured $40 million in funding to drive its international expansion and launch its own payment rails for Africa and beyond.
Nala is an African payment company and money transfer app that enables users to make secure and reliable payments from Europe, the UK, and the US to Tanzania, Kenya, Rwanda, Uganda, and Ghana in just seconds. Last year, it expanded into the European Union, adding 19 new countries to its list of sending countries, furthering its mission to connect Africans globally.
In 2023, Nala achieved exponential revenue growth, reaching profitability and generating a positive cash flow. Over the past 20 months, transaction volume has increased by a staggering 34 times. Following this remarkable growth, the company plans to continue its expansion and international growth with the fresh funding from its Series A round. The funding round was led by Acrew Capital, with participation from DST Global, Amplo, Norrsken22, and HOF Capital, as well as notable investors such as Ryan King and Vlad Tenev.
The goal is to extend its services beyond Africa, creating solutions for the global diaspora of migrants. A portion of the funding will be dedicated to setting up Rafiki, a new B2B payment platform designed to establish payment rails for the next billion users.
This idea has likely crossed the minds of hundreds of young Tunisians who have the potential to execute such projects. However, regulatory rigidity remains a major obstacle. We understand the security concerns and fears of money laundering that have plagued us for years. Nevertheless, this should not condemn an entire promising segment capable of improving the relationship between the Tunisian diaspora and their homeland.
