Benjamin Fernandes’ goal for the fintech startup he launched in 2018, NALA, was to speed up money transfers within his native Tanzania.
It now operates in nearly a dozen African countries, providing African ex-pats working in the US and 20 European countries with a more affordable way to send money home. Last year alone, those outside Africa spent $8 billion in transfer fees. Africa remains the most expensive continent in which to send money.
In July, despite a depressed fintech market, NALA’s 100-person startup raised $40 million (with a valuation of more than $200 million). According to capital-market data provider PitchBook, only five other African fintechs have raised more than $40 million in a Series A fundraising since 2015.
The cross-border remittance service allows migrants from African countries to send money to friends and family in 11 countries, including Uganda, Kenya, Nigeria, Rwanda and Tanzania. NALA now has over 500,000 registered customers.
While other companies provide a similar service, NALA says it sets itself apart by understanding the diaspora’s needs and built a platform that meets those needs.
In imagining his company, Fernandes, 31, a former TV host and Stanford MBA, understood that his own path was not unusual. Roughly a million Africans leave the continent each year for education and work, and that number will likely grow. The United Nations projects that Africa’s population will nearly double to 2.5 billion by 2050, meaning the continent will be the birthplace of nearly 1 in 4 working-age people in the world. The latest for NALA is an expansion. With revenue exceeding $15 million, it will enter the South Asian market (including India, Pakistan and the Philippines) and Latin America. “While Africa’s payment issues are stark, they are part of a global problem,” says Fernandes. “Our experience as builders, cross-border and locally, in Africa gives us a unique edge. We’re excited to address similar challenges across other emerging markets.”
