TerraPay, an Africa-focused digital payments provider focused on remittance transfers to Africa, has announced it has secured $95 million in debt financing from major investors. The funding will be used to enhance affordable remittance services across the continent, bolstering transaction speed and reliability for the millions of Africans who rely on these services.
The financing round was led by the International Finance Corporation (IFC), a member of the World Bank Group, with a $75 million loan. British International Investment (BII) also contributed a $20 million senior secured loan, facilitated through Lendable’s existing senior secured facility.
This significant investment reflects the growing confidence in TerraPay’s business model and its potential for transformative impact in the African financial landscape. The company’s cap table is notably influenced by the IFC, Partech Africa, and Prime V Holding 2 B.V., all of whom have shown continued support for TerraPay’s mission.
Ambar Sur, Founder and CEO of TerraPay, expressed gratitude for the ongoing support from investors, stating, “This funding will not only strengthen our infrastructure and expand our network, but also empower us to create innovative solutions that cater to the evolving needs of our users across Africa.”
Aliou Maiga, IFC’s Regional Industry Director for the Financial Institutions Group for Africa, echoed this sentiment, emphasizing the importance of supporting digital payment infrastructure that fosters financial inclusion and economic growth on the continent.
TerraPay plans to leverage this investment to expand its partnerships with global money transfer operators, increase transaction volumes, and further reduce the cost and complexity of remittance transfers. The company recently partnered with enza, a payments technology company focused on African banks, and Safaricom, allowing over 32 million M-PESA users to send and receive money internationally.
With its strong financial backing and strategic vision, TerraPay is poised to play a pivotal role in shaping the future of digital payments and remittance services across Africa, unlocking new opportunities for individuals, businesses, and economies alike.