Tanzanian entrepreneur Benjamin Fernandes' NALA raises $40 million to build cross-border payments for emerging markets

Oluwatosin Racheal Alabi -

Key Points:

  • NALA, led by Benjamin Fernandes, raised $40 million to expand its payment services internationally and develop its own payment rails for Africa and beyond.
  • The fintech startup saw a 10x revenue increase and a 34x rise in transaction volume, achieving profitability and positive cash flow within the last year.
  • New funding will support NALA’s consumer business expansion and the launch of Rafiki, a B2B payments platform aiming to serve the next billion users.

NALA founded and led by Tanzanian entrepreneur Benjamin Fernandes has made a strides in the financial technology sector by raising $40 million to fuel its international expansion and develop its own payment rails for Africa and beyond.

NALA stands out as a transformative African payments company and money transfer app. It enables users to make secure and reliable payments from Europe, the UK, and the US to Tanzania, Kenya, Rwanda, Uganda, and Ghana within seconds.

The company expanded its footprint last year by launching in the European Union (EU), adding 19 new countries to its roster of send countries. This strategic move has been instrumental in advancing NALA’s mission to connect Africans globally.

Remarkable Growth and Financial Milestones

In the past year, NALA has demonstrated impressive growth. The company achieved a 10x increase in revenue, reached profitability, and maintained positive cash flow.

Over the last 20 months, NALA witnessed a staggering 34x increase in transaction volume. These achievements underscore NALA’s potential and readiness for further growth and international expansion, bolstered by the recent $40 million Series A funding round.

The Series A funding round was led by Acrew Capital, with participation from DST Global Partners, Amplo, Norrsken22, HOF Capital, and notable angels such as Ryan King and Vlad Tenev. This funding will empower NALA to expand its consumer business beyond Africa, catering to the global migrant diaspora. Additionally, it will facilitate the development of Rafiki, NALA’s new B2B payments platform, which aims to establish the payment infrastructure for the next billion users.

A Visionary’s Ambition

“This $40 million funding round marks a pivotal moment for NALA. It will enable us to go beyond remittances and extend our reach beyond Africa, building a robust payments ecosystem. We’re reinvesting this money to enhance our infrastructure, ensuring reliable, low-cost payments for all. With the launch of our own payment rails and the expansion of our B2B platform Rafiki, we’re not just talking about change – we’re building it. We’ve got some bold, ambitious plans, give us a couple of years,” said Benjamin Fernandes, founder and CEO of NALA.

NALA’s success story is further highlighted by its previous fundraising efforts. In 2022, the company raised $10 million through Accel, Amplo, and Bessemer Partners, setting the stage for its current achievements.

Under the visionary leadership of Benjamin Fernandes, NALA is positioned to revolutionize the payments landscape, not just in Africa but globally.

With strategic investments, innovative platforms, and a commitment to building a reliable and low-cost payments ecosystem, NALA is set to become a major player in the global fintech arena.