Nala Raises $40M to Expand its Payments Platform in Africa

Nala, a remittance startup focused on facilitating payments in Africa, has secured $40 million in a Series A funding round, marking one of the largest such investments in the continent. The funding will support Nala's expansion into new markets, including Asia and Latin America, and bolster its B2B payments platform.

• The round was led by Acrew Capital, with participation from DST Global Partners, Norrsken22, HOF Capital, and existing investors.
• The funds will be used to scale Nala's remittance business to serve a wider global audience, particularly in emerging markets.
• Nala plans to leverage its B2B payments platform, Rafiki, to power its consumer app and provide reliable payment services to global businesses.

Nala's Focus on Africa's Growing Remittance Market

The demand for remittance services in Africa is on the rise, fueled by migration and the increasing need for cross-border financial transactions. The World Bank projects remittance flows to sub-Saharan Africa to grow by 1.5% in 2024.

• Nala's strategy aims to capitalize on this growing market by offering affordable and efficient remittance solutions.
• The company is particularly focused on serving the needs of the next generation of Africans, who are expected to account for a significant portion of the global youth population by 2050.

Expanding Beyond Africa: Nala's Global Ambitions

Nala's vision extends beyond Africa, with plans to establish a global presence and cater to the growing demand for cross-border payments. The company sees opportunities in markets like Asia and Latin America, where remittances are also significant.

• The company's focus on building a robust payments ecosystem will allow it to serve a diverse range of clients, including individuals, businesses, and financial institutions.
• Nala's expansion into new markets will leverage its existing expertise in Africa's unique financial landscape, while also adapting its offerings to meet the specific needs of each region.

Nala's B2B Payments Platform: Rafiki

Nala's B2B payments platform, Rafiki, is a key component of its growth strategy. Rafiki offers a reliable and cost-effective solution for businesses making payments into and out of Africa.

• By directly integrating with banks and mobile money providers, Rafiki ensures service availability and competitive pricing.
• Early clients of Rafiki include global payroll providers, remittance companies, and banks, highlighting the platform's versatility and appeal.
• The platform's success is driven by its ability to address the challenges of cross-border payments, particularly in emerging markets.

Nala's Achievements and Future Outlook

Nala has achieved significant milestones, including surpassing 500,000 customers and reaching profitability. The company's recent funding round further solidifies its position as a leading player in Africa's fintech landscape.

• Nala's focus on innovation and its commitment to providing affordable financial services have earned it recognition and support from investors and industry leaders.
• The company's ambitious plans to expand its services globally, coupled with its strong track record, suggest a bright future for Nala in the rapidly evolving world of fintech.