Nala, a remittance startup, recently secured an impressive $40 million in funding to expand its services and launch a new B2B payments platform. The funding round was led by San Francisco-based VC firm Acrew Capital, with participation from DST Global, Norrsken22, HOF Capital, and other notable investors.
The founder and CEO of Nala, Benjamin Fernandes, shared that this new injection of capital will support the company’s global growth plans, including expanding its remittance services to serve markets in Asia and Latin America. Currently, Nala allows users in the E.U., U.K., and U.S. to send money across various banks and mobile money services in Africa.
In response to user demand for more control over their funds, Nala decided to introduce payment capabilities to its platform. The company plans to scale these offerings to new markets, starting with Asia. Additionally, Nala is focusing on its B2B payments platform, Rafiki, to facilitate payments into and out of Africa for global businesses.
Fernandes expressed excitement about the funding round, highlighting Nala’s plans to go beyond remittances and create a robust payments ecosystem. With the launch of their payment rails and the expansion of Rafiki, Nala aims to provide reliable and low-cost payment solutions. The company is determined to bring about real change in the industry.
The success of Nala’s consumer business, which contributes over 90% of its revenues, can be attributed to the reliability of its services. The payments platform, Rafiki, ensures service availability and lower charges, making it competitive in the market. Nala has already achieved profitability and is on track to surpass 500,000 customers.
Looking ahead, Nala intends to expand its remittance services to emerging markets like Asia and Latin America. The World Bank predicts strong growth in remittance flows to regions like sub-Saharan Africa, East Asia, the Pacific, South Asia, Latin America, and the Caribbean. This growth underscores the need for reliable and cost-effective remittance solutions.
As the demand for remittance services increases, Nala aims to reduce the cost of sending money globally. Digital remittances are already proving to be more cost-effective than traditional methods, making platforms like Nala and Flutterwave attractive options for users. The company is committed to making cross-border payments more accessible and affordable for all.
Acrew Capital’s founding partner, Lauren Kolodny, expressed confidence in Nala’s potential to lead the remittance market for the next generation of Africans. With a strong team and a focus on innovation, Nala is well-positioned to build the cross-border payment infrastructure for the future.
