Nala Secures $40 Million in Series A Funding for B2B Payment Expansion

The San Francisco-based venture capital firm Acrew Capital led a $40 million Series A investment round for the Tanzanian fintech startup Nala. This large cash increase will be used to support the company’s aggressive expansion objectives and improve Rafiki, Nala’s business-to-business (B2B) payment platform.

Fueling Growth and Expansion

Nala’s recent funding success highlights the increasing demand for its services. The $40 million Series A round, which was oversubscribed, saw participation from notable investors including DST Global, Norrsken22, HOF Capital, Amplo, and NYCA Partners. Angel investors Ryan King from Chime and Vlad Tenev from Robinhood also contributed.

The funds will be pivotal in developing Nala’s B2B platform Rafiki and fueling its broader expansion initiatives. CEO Benjamin Fernandes emphasized the company’s commitment to reinvesting in its infrastructure to ensure reliable, low-cost payments. “We’re reinvesting this money to enhance our infrastructure, ensuring reliable, low-cost payments for all. With the launch of our own payment rails and the expansion of our B2B platform Rafiki, we’re not just talking about change, we’re building it,” Fernandes stated.

Rafiki, which was introduced in March, is aimed at companies who have to transfer money into and out of Africa. The need for more financial control among users drove the platform’s development. The latest round of funding comes after Nala’s $10 million seed round in 2022, putting the company in a position to grow outside of Africa.

By concentrating on B2B payments, Nala hopes to better serve the needs of companies doing business in and with Africa. Nala will be able to improve its payment infrastructure with the help of the additional cash, guaranteeing quick and affordable transactions. Nala is in a great position to lead the way in changing the fintech scene in Africa and beyond thanks to the support of well-known investors.