Tanzania’s cross-border platform NALA which now facilitates local to international money transfers has raised $10 million. The seed round comes three years after securing a seven-figure pre-seed led by Accel in 2019.
In 2021, NALA began testing international money transfers after users expressed interest in moving money from the United Kingdom to East African countries like Kenya, Uganda, Tanzania, and Kenya – ushering the fintech to the remittance business.
The remittances business is lucrative despite digital lenders vying for less than 20% of the international money market frequently dominated by players offline. Africa is among the costliest regions to send money to. NALA pitches to customers that its platform offers one of the best rates and lowest prices by charging an average of 10.6% in transaction fees.
Other players in a similar space are facilitating money transfers from the U.K to select African countries are Lemonade Finance, Chipper Cash, Zazuu, and Sendwave. In 2021, the platform now allows payments across Rwanda, Ghana, Tanzania, the U.K, Uganda, and Kenya. In the last half-year, over 8,000 customers have moved over eight figures worth of volume transactions across Africa.