Nala Lands $50M Credit Facility for Stablecoin Payment Network

Tanzanian-founded fintech Nala has secured a significant credit facility of up to $50 million to fuel the expansion of its stablecoin-powered cross-border payment network. This strategic financing comes from private credit firm Liquidity, with an initial tranche of $25 million, expandable through Mars Growth Capital, a collaboration between Liquidity and Japan's MUFG Bank. The move underscores a growing trend among high-volume payment processors to leverage debt financing for operational liquidity, thereby avoiding equity dilution.

The newly acquired capital will be instrumental in Nala's growth strategy, enabling the pre-funding of international transfers, the establishment of new payment corridors, and the support of larger enterprise clients utilizing its infrastructure for both collections and disbursements. This financial injection is particularly timely as demand for faster, more efficient business payment solutions between emerging markets, Europe, and the United States continues to surge. Nala's existing strong balance sheet, bolstered by a substantial $40 million equity raise in 2024, allows this credit line to be purely growth-oriented.

Benjamin Fernandes, Nala's founder and CEO, highlighted the company's rapid scaling, noting that its growth outpaced its capacity for pre-funding single-direction payments. Founded in 2017 initially as a remittance service for the African diaspora, Nala has evolved significantly. Its enterprise platform, Rafiki, now connects over 249 banks and 26 mobile money services across 16 countries, demonstrating a robust and expanding operational footprint.

The increasing adoption of stablecoin-based payment systems is driven by businesses seeking to circumvent the traditional delays and high foreign exchange costs associated with cross-border transactions, especially in emerging economies. Liquidity's financing approach is noteworthy, as it was tailored to Nala's real-time payment flows and liquidity needs, deviating from conventional venture debt structures. Paul Brodie, Liquidity's global head of investments, emphasized the facility's design around Nala's compliant stablecoin rails and its rapid expansion in key emerging market corridors.

While Nala has not disclosed specific transaction volumes or revenue figures, the company anticipates several major enterprise contracts to become operational later this year. This outlook signals a growing corporate appetite for stablecoin settlement networks as a viable alternative to legacy financial infrastructure. The fintech sector's shift towards credit facilities for scaling liquidity-intensive operations, rather than solely relying on equity rounds, reflects a maturing market where operational efficiency and capital structure optimization are paramount.

Nala's strategic use of this credit line positions it to capture a larger share of the cross-border payment market, particularly in regions where traditional banking infrastructure presents significant friction. The company's ability to secure such a substantial credit facility from reputable financial institutions like Liquidity and MUFG Bank validates its business model and its potential to disrupt established payment systems.