The goal of NALA, a fintech startup founded by Benjamin Fernandes in 2018, was to speed up money transfers within his home country of Tanzania.
It currently operates in approximately 12 countries in Africa and offers a more affordable way to send money to African expatriates working in the United States and 20 European countries. Last year alone, players from outside Africa spent $8 billion in transfer fees. Africa remains the most expensive continent to send remittances to.
In July, NALA’s 100-person startup raised $40 million at a valuation of more than $200 million, despite the fintech market downturn. Only five other African fintech companies have raised more than $40 million in Series A funding since 2015, according to capital markets data provider Pitchbook.
The cross-border money transfer service will allow migrants from African countries to send money to friends and family in 11 countries, including Uganda, Kenya, Nigeria, Rwanda and Tanzania. NALA currently has over 500,000 registered customers.
While other companies offer similar services, NALA says it differentiates itself by understanding the needs of the diaspora and building a platform to meet those needs.
As Fernandez, 31, a former TV host and Stanford MBA, envisioned his company, he realized that his path was not unique. Approximately one million Africans leave the continent each year for education or work, and that number is likely to increase. The United Nations predicts that Africa’s population will nearly double to 2.5 billion by 2050. This means that the African continent is the birthplace of almost one in four of the world’s working-age people. NALA’s latest work is an expanded version. With revenues of over $15 million, we will enter the South Asian market (including India, Pakistan, and the Philippines) and the Latin American market. “Africa’s payment problems are serious, but they are part of a global problem,” Fernandes said. “Our experience as a builder across borders in Africa gives us unique strengths, and we are excited to address similar challenges in other emerging markets.”
Source link Read more related news on Gnews
