Nala, the Tanzanian-founded fintech specializing in stablecoin-powered cross-border payment infrastructure, has secured a credit financing facility of up to $50 million from private credit firm Liquidity. The funding is intended to support Nala’s expansion as demand for faster business payments between emerging markets, Europe, and the United States continues to grow.
The facility commences with an initial $25 million tranche and has the potential to scale to $50 million or more through Mars Growth Capital, a joint venture between Liquidity and Japan-based lender MUFG Bank. Nala stated that this capital will be used to pre-fund transfers, broaden its payment corridors, and service larger enterprise clients utilizing its infrastructure for collections and payouts.
This financing arrangement reflects a broader trend among fintech companies handling substantial payment volumes. Instead of pursuing additional equity raises, these firms are increasingly opting for credit facilities to finance liquidity-intensive operations, thereby avoiding shareholder dilution. Nala noted in its statement that it retains more than half of the capital from its $40 million equity raise in 2024, positioning this debt financing for expansion rather than balance sheet support.
“At some point our business was more than doubling every other quarter,” founder and chief executive Benjamin Fernandes noted in a statement on Thursday. “We grew faster than we could handle pre-funding for single-direction payments.”
Founded in 2017 as a remittance application for the African diaspora, Nala has diversified its offerings to include business payments through Rafiki, its enterprise infrastructure platform. The company asserts that its network connects over 249 banks and 26 mobile money services across 16 countries.
Interest in stablecoin-based payment systems has intensified as businesses seek more efficient and cost-effective methods for cross-border money movement. This demand is particularly pronounced in emerging markets, where traditional bank transfer delays and foreign exchange costs remain elevated. Liquidity confirmed that the financing structure was tailored to Nala’s real-time payment flows and liquidity requirements, departing from a conventional venture debt model.
“Our team structured a facility that accounts for Nala’s compliant stablecoin rails and rapid growth in emerging market corridors,” said Paul Brodie, Liquidity’s global head of investments.
Nala did not disclose its transaction volumes or revenue figures. The company indicated that several enterprise contracts are anticipated to become active later this year, suggesting increasing corporate interest in stablecoin-based settlement networks.