The $10 million raised by Tanzania’s cross-border platform NA, which facilitates money transfers from local to international funds, has been a success. Three years after Accel secured a seven-figure preseed in 2019, the seed round is now.
NALA started testing international money transfers in 2021 after users expressed an interest in moving money between the United Kingdom and East African countries such as Kenya, Uganda, Tanzania, Kenya and Tanzania. This was the beginning of fintech’s entry into the remittance industry.
Despite digital lenders competing for less than 20% in the international money market, the remittances industry is highly lucrative. Africa is one of the most expensive regions to send money. NALA claims that customers can get the lowest rates and highest prices through its platform. On average, NALA charges 10.6% transaction fees.
Lemonade Finance and Chipper cash are other players that facilitate money transfers from the U.K. to selected African countries. The platform will allow payments in Rwanda, Ghana and Tanzania by 2021. Over 8,000 African customers have made volume transactions worth over $8 million in the past half-year.