Nala, a remittance startup focused on improving cross-border payments in Africa, has raised $40 million in a Series A funding round.
The oversubscribed round was led by Acrew Capital, with participation from DST Global Partners, Norrsken22, HOF Capital, Amplo, NYCA Partners, and angel investors such as Ryan King of Chime and Vlad Tenev of Robinhood.
The funding will enable Nala to scale its operations beyond Africa, targeting new markets in Asia and Latin America.
The funds will also support the enhancement of Nala’s B2B payments platform, Rafiki, which facilitates payments into Africa for global businesses.
Founded by Benjamin Fernandes in 2017, Nala initially focused on local money transfers in Tanzania before pivoting to international remittances in 2021.
The company now enables users in the EU, UK, and US to send money to 11 African markets, integrating with 249 banks and 26 mobile money services, including Kenya’s M-Pesa.
Fernandes emphasized that the decision to expand Nala’s payment capabilities was driven by user demand for comprehensive money management solutions.
The Rafiki platform supports Nala’s consumer app and aims to ensure reliable and cost-effective services for businesses making payments into and out of Africa.
The startup’s focus on reducing transaction fees is a core part of its mission. Africans lost an estimated $8 billion in fees last year, with average fees for sending money home ranging between 7-8%.
Nala’s goal is to make cross-border payments faster, safer, and more affordable, addressing a huge financial challenge on the continent.
With the new funding, Nala plans to launch its own payment rails and expand its reach, building a solid payments industry.
The company’s growth direction looks positive, having already achieved profitability and serving nearly 500,000 customers. Nala’s B2B platform is gaining traction, with early clients like UK-based fintech TransferGo using Rafiki for African payouts.
The World Bank predicts a 1.5% growth in remittance flows to sub-Saharan Africa this year, highlighting the ongoing demand for remittance services.
Nala’s expansion into new markets aligns with this trend, aiming to provide reliable and low-cost remittance solutions on a global scale.
Acrew Capital’s founding partner, Lauren Kolodny, is confident in Nala’s potential, noting the team’s deep local knowledge, fintech expertise, and community-building skills as key factors in their success.
Kolodny believes Nala will lead the next generation of remittances for Africa’s growing youth population.
