Tanzanian Cross-Border Money Transfer Fintech Raises USD 10 M for Expansion

Tanzanian mobile money transfer company NALA recently raised USD 10 mln backed by venture firm Amplo, Accel, and Bessemer Partners with the participation of various angel investors.

Founded by Tanzanian Benjamin Fernandes, NALA is an app that enables to make payments from the UK to Tanzania, Kenya, Uganda, Rwanda, Ghana, and South Africa.

The new funding will finance the company’s expansion strategy to reach 12 African countries by the end of the year including Nigeria.

NALA also recently received permission to go live in the US and the European Economic Area (targeting a Q1 launch).

Commenting on the new fundraising round, CEO Benjamin Fernandes said: “Payments in Africa are 1% build. It’s 2022 and Africa’s still the most expensive place in the world to send money in and out of, until this changes we are limited by the opportunities of trade across the continent. Over the next five years, while logistics gets better, more places around the world are going to trade in and out of Africa, we are positioning ourselves to be at the forefront of this change.”

Tanzania Mobile Money Remittance

Tanzania’s mobile money penetration reached 53% with 29.7 million mobile money subscriptions in 2020 for a transaction value of USD 81 bln.

IMARC Group expects the market to grow at a CAGR of 24.7% during 2021-2026.

In 2021, mobile operator Vodacom Tanzania has initiated the second phase of its International Money Remittance expansion scheme that allows for direct money transfers from M-Pesa to all bank accounts in East Africa.