Tanzanian Fintech Raises $10M, Plans to Enter 12 More African Countries – Fintech

A Tanzanian fintech startup announced that it has raised $10 million in its latest funding round and plans to use the funds to fund expansion into other African countries.

Fintech plans to enter 12 more countries by the end of the year

The Tanzanian fintech behind an app that enables payments from the UK to Africa, Nala, recently announced it had raised $10 million in a funding round backed by Amplo, Accel and Bessemer Partners. The so-called angel investors who participated in this round include Robinhood founder Vladimir Tenev and Jonas Huckestein, CTO at Monzo.

According to a Test report Published by Fintechnews Africa, the fintech's app already enables payments from the UK to five African countries: Tanzania, Kenya, Uganda, Rwanda and Ghana. However, after the latest fundraising, Nala will have added twelve more African countries by the end of 2022, according to the report.

The publication also revealed that Nala has just begun testing a version of its app suitable for businesspeople looking to make payments to Africa. In addition to this new feature, the app is already equipped with a multi-currency account feature, allowing users in the diaspora to store local African currencies abroad, the report said.

Cost of sending funds to Africa

Meanwhile, Nala co-founder and CEO Benjamin Fernandes explained why his company decided to develop this app in his comments after the fundraise. He said:

"Payments in Africa are built at 1%. It is 2022 and Africa is still the most expensive place in the world to send money in and out of. Until this changes, we are constrained by trading opportunities across the continent. As logistics improve over the next 5 years and more places around the world will trade to and from Africa, we are positioning ourselves to be at the forefront of this change."

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic struggles of some African countries, as well as how digital currencies can provide an escape route for Africans.

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