NALA’s Journey: Tanzania’s Pioneering Digital Mobile App

NALA, a Tanzanian fintech startup, has rapidly evolved into a leading digital mobile app transforming financial services in East Africa. Its journey from a simple mobile money application to a comprehensive digital banking platform is a testament to innovation, determination, and the power of technology in enhancing financial inclusion.

Founded in 2018 by Benjamin Fernandes, NALA began as a mobile money app designed to streamline transactions and make money transfers more accessible and affordable for Tanzanians. The initial version of the app allowed users to manage multiple mobile money accounts from a single interface, providing a much-needed solution in a market where different mobile money services often operated in isolation.

By 2019, NALA had gained significant traction, attracting over 250,000 users within its first year. The app’s user-friendly interface and ability to facilitate quick, low-cost transactions resonated well with the Tanzanian market, where mobile money services are widely used but often cumbersome to navigate.

In 2020, NALA raised $1 million in a seed funding round led by Accel and Bessemer Venture Partners. This funding was pivotal in expanding the app’s capabilities beyond basic money transfers. NALA introduced features such as bill payments, airtime purchases, and the ability to send money internationally, targeting the vast Tanzanian diaspora.

The introduction of NALA’s international money transfer feature was particularly groundbreaking. It allowed Tanzanians living abroad to send money home at lower fees than traditional remittance services, significantly benefiting both senders and recipients. By the end of 2020, NALA’s user base had grown to over 500,000, and the app was processing millions of dollars in transactions monthly.

In 2022, NALA took a significant leap by transitioning into a digital banking platform. This move was driven by the need to offer more comprehensive financial services and cater to the growing demands of its users. The app now includes functionalities such as savings accounts, microloans, and investment options, making it a one-stop-shop for all financial needs.

The digital banking features were rolled out in phases, starting with savings accounts that offered competitive interest rates, encouraging users to save money securely. By mid-2023, NALA had introduced microloans, providing users with quick access to credit without the need for traditional banking infrastructure.

NALA’s impact on financial inclusion in Tanzania is evident in its impressive growth metrics. As of 2024, the app boasts over 1 million active users, with monthly transaction volumes exceeding $100 million. The digital banking features have attracted a diverse user base, from small business owners needing microloans to individuals seeking better ways to save and invest their money.

A study conducted in late 2023 by the University of Dar es Salaam highlighted NALA’s role in increasing financial literacy among its users. The study found that 65% of NALA users felt more confident in managing their finances after using the app, underscoring the app’s educational value alongside its practical benefits.

NALA’s journey is far from over. The company has plans to expand its services to other East African countries, including Kenya and Uganda, in the coming years. With continuous innovation and a focus on user-centric solutions, NALA is poised to become a key player in Africa’s digital banking landscape.

NALA’s transformation from a mobile money app to a digital banking platform illustrates the potential of fintech to drive financial inclusion and empower users with better financial tools. As NALA continues to grow and innovate, it sets a powerful example for other fintech startups in Africa and beyond.