Startup Nala, which specializes in cross-border payments, intends to raise $120 million in the next round of financing.
The mentioned startup, which is based in Tanzania, plans to achieve the specified result by selling from 10% to 15% of the equity stake. The relevant information was published by the media last Wednesday, February 26.
Nala founder and chief executive officer Benjamin Fernandes said that the startup expects to raise funds closer to the end of 2026.
Last year, the startup raised $40 million. At that time, Nala stated that these funds were intended to expand its operations in markets beyond Africa and create a B2B payment network.
It’s worth noting that fintech companies in Africa are currently poised to blossom. There is also an increase in the area of cross-border trade in this region. McKinsey & Co. predicts that the revenue of fintech companies in Africa could reach $47 billion by 2028. This indicator is five times higher than the figure recorded in 2023.
Benjamin Fernandes stated that fintech is the most-funded thing in Africa from venture capital globally, and it will continue to be so for the next 15-20 years, as the payment infrastructure on the continent is broken.
Most of Nala’s remittances originate in the United States. The share of these remittances in the total revenue structure of a startup is 60%. Nals currently conducts business in 11 African countries.
Compliance is one of the most significant hurdles faced by cross-border payments, especially in the context of tightened regulations and increased scrutiny worldwide. Sovos chief executive officer Kevin Akeroyd, during a conversation with representatives last year, said that everything is becoming more cross-border and regulated, so tax compliance regulation is huge for new business models in new markets.
As we have reported earlier, Bitwise Raises $70 Million.
