Morganable Technology | Innovation
Nomba has secured a $3 million debt facility to expand its cross-border payment infrastructure across Africa and strengthen payment links with Asian markets.
Lagos —
Nigerian fintech company Nomba is expanding its cross-border payment operations after securing a $3 million debt facility from CardinalStone Finance Company Limited.
The funding is expected to help the company increase the amount of money it processes across international payment corridors while supporting businesses involved in trade between Africa and other parts of the world.
According to Nairametrics, Nomba plans to use the facility to expand its operations from the Democratic Republic of Congo (DRC), where it is developing a payment and settlement hub for trade between Central Africa and Asia.
The company is targeting more than $1 billion in monthly cross-border payment volume as it expands its financial infrastructure.
Expanding cross-border payments
Cross-border payments have become increasingly important as African businesses trade with companies and customers outside their home countries. However, moving money between different countries can still be difficult because of different currencies, banking systems and settlement processes.
Nomba said its latest funding would provide additional US dollar liquidity through its banking relationships in Hong Kong and Singapore.
This will enable the fintech to support transactions between African businesses and their international trading partners more efficiently.
The company is also looking beyond the DRC. It has identified Zambia and Uganda as its next expansion markets as it seeks to build a wider payment network across the continent.
Nomba Chief Executive Officer Yinka Adewale said the new facility would give the company more room to move liquidity across different payment corridors and improve settlement speeds.
He also said the company intends to continue expanding into African markets while strengthening payment links between Africa and Asia.
Addressing payment challenges
For many businesses, international payments can involve delays, currency conversion challenges and complicated banking procedures. These difficulties can become more significant for small and medium-sized businesses that may not have access to sophisticated international banking services.
Nomba is positioning its technology to address some of these challenges by combining banking infrastructure, global payment access and knowledge of local markets.
The company said its goal is to make it easier for businesses to move money across borders in a way that is closer to the simplicity of domestic payments.
This approach reflects a broader trend in African fintech, where companies are developing digital payment systems that connect businesses across different markets.
As African economies become more digitally connected, payment companies are increasingly looking beyond individual countries.
A growing fintech infrastructure
Nomba’s latest funding also represents a further step in the company’s development from an agency banking business into a broader financial technology and business banking company.
The fintech previously raised $30 million in a Pre-Series B funding round in 2023. The funding was led by Base10 Partners, with participation from Helios Digital Ventures, Shopify, Partech and Khosla Ventures.
The company has since continued to develop payment services for businesses.
Its current platform provides business accounts, payment services and multi-currency capabilities. Nomba’s website says the company serves hundreds of thousands of businesses and processes trillions of naira in transactions.
The company is also licensed and regulated by the Central Bank of Nigeria, according to its website.
Therefore, the latest funding is not simply about increasing the amount of money Nomba can process. It is also part of a wider effort to build infrastructure capable of supporting businesses that operate across multiple markets.
Africa-Asia trade
The focus on Africa-Asia payment corridors is particularly significant because businesses across the two regions have increasingly strong commercial relationships.
African companies import products, equipment and other goods from Asian markets, while businesses across the continent are also seeking opportunities to sell African products internationally.
However, payment infrastructure must keep pace with this trade.
Nomba said its DRC operation will serve as a bridge into Central and East Africa. From there, the company intends to expand its network into additional markets.
This could allow businesses operating in different African countries to access international payment channels without relying entirely on traditional banking processes.
At the same time, the expansion will require the company to manage regulatory requirements, foreign exchange issues and differences between financial systems in each market.
What the funding means for businesses
For African businesses, more efficient cross-border payment infrastructure could reduce some of the difficulties associated with international transactions.
Faster settlement can help businesses receive payments sooner, while improved access to foreign currency can make international transactions easier to manage.
It could also support companies that want to expand beyond their domestic markets.
Nevertheless, the success of such systems will depend on more than funding. Strong regulatory compliance, reliable technology, secure transactions and partnerships with financial institutions will remain important as Nomba enters additional markets.
The company is also preparing to raise between $20 million and $50 million in further funding in the coming months, according to Nairametrics.
If completed, that additional funding could provide further capital for the company’s planned expansion.
Overall, Nomba’s latest debt facility highlights the growing role of fintech infrastructure in connecting African businesses to international markets.
As digital commerce continues to grow, the ability to move money quickly and securely across borders will remain an important part of Africa’s evolving digital economy.
