Tanzanian fintech company NALA has raised $10 million in funding to expand to 12 African countries by the end of the year.
The app, which currently allows users to make payments from the United Kingdom (UK) to Tanzania, Kenya, Uganda, Rwanda, and Ghana is also targeting launches in the United States and the European Economic Area in Q1- 2022.
NALA secured $10 million funding was secured from Amplo, Accel, and Bessemer Partners, with participation from angels including the founders of Monzo, Robinhood, Alloy and Deel and Peeyush Ranjan, the head of Google Payments.
“Payments in Africa are one per cent built. 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 for 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,” said NALA Founder and CEO Benjamin Fernandes.
Fernandes added that NALA will be launching a crowdfunding campaign this year where its first users will get access to own some shares in the company as part of its user acquisition and retention efforts.
The company also announced in a statement that Sheel Tyle, the founder and general partner at Amplo, will join its board.
Currently, 80% of the money sent to Africa is done with physical cash. The remaining 20% is done via digital channels but are subject to multiple layers of fees and paperwork.