TerraPay Gets $95 Million Loan to Improve Affordable Money Transfers in Africa

TerraPay Secures $95 Million Loan for Affordable Transfers in Africa: TerraPay, a UK-based fintech company specializing in remittance transfers within Africa, has secured a major financial boost. 

The company has received $95 million in debt financing to improve the affordability, reliability, and speed of money transfers across the continent. 

This significant investment will allow TerraPay to expand its operations, forge new partnerships, and ultimately make sending and receiving money in Africa faster, easier, and cheaper.

Financing Package Fuels Expansion Plans

The $95 million loan comes from a consortium of prominent financial institutions. 

The International Finance Corporation (IFC) is providing a substantial portion of the funds, including a $30 million loan and a $15 million B Loan. 

Additionally, development finance institutions OP Finnfund Global Impact Fund I and BIO are contributing a combined $30 million parallel loan. 

British International Investment (BII) is also participating, offering a $20 million senior secured loan through Lendable.

Strategic Partnerships to Increase Transfer Volumes

TerraPay plans to leverage the new funds to expand its network and forge partnerships with major money transfer operators. 

Companies like Western Union, MoneyGram, and Ria are all potential collaborators. 

By integrating with these established players, TerraPay aims to significantly increase the volume of remittance transactions it handles across Africa. 

This, in turn, will enable them to drive down costs and improve efficiency, ultimately benefiting both senders and receivers of money.

Streamlining Cross-Border Payments

TerraPay is also focused on streamlining cross-border payments within Africa. 

The company has partnered with Enza, a payments technology company specializing in African markets. 

This collaboration aims to improve payment acceptance and make cross-border transactions smoother and faster.

TerraPay Secures $95 Million Loan for Affordable Transfers in Africa: Building on a Strong Foundation

This is not the first time the IFC has shown its support for TerraPay. 

In 2019, the organization invested $8 million in the company’s Series A funding round. 

TerraPay’s Founder and CEO, Ambar Sur, expressed his gratitude for the IFC’s continued support, highlighting its role in strengthening their infrastructure, expanding their network, and developing innovative solutions.

Read Next: Access Holdings and Coronation Group in Partnership with M-Pesa to Provide Regional Remittance in Africa

Boosting Financial Inclusion Across Africa

Aliou Maiga, IFC’s Regional Industry Director for the Financial Institutions Group for Africa, emphasized the importance of this partnership in enhancing digital payment infrastructure. 

He believes it will empower individuals and small businesses alike, fostering greater financial inclusion across the continent.

Focus on Key African Corridors

BII, another key investor, highlighted that their funding will provide TerraPay with working capital to manage the increasing volume of remittances flowing into Africa. 

The focus will be on key remittance corridors, with countries like Kenya, Ghana, Egypt, Uganda, and several others in West and Central Africa expected to see significant benefits.

TerraPay’s $95 million loan represents a major step forward in making money transfers across Africa more affordable, reliable, and efficient. 

With this investment, the company is well-positioned to play a significant role in shaping the future of financial services on the continent.  

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