TerraPay, a leading African digital payments provider, has secured a significant debt financing of $95 million. This investment will fuel their mission to make sending money home easier and cheaper across the continent.
The funding comes from a consortium of prominent investors, including the International Finance Corporation (IFC), ILX, and the British International Investment (BII). This will allow TerraPay to expand its network, reduce remittance fees, and ensure faster and more reliable transactions for people sending and receiving money throughout Africa.
A significant portion of the funding, $75 million, comes from the IFC. This includes a $30 million loan and a $45 million parallel loan co-financed by development finance institutions and asset managers. The BII will also contribute a $20 million senior loan.
TerraPay plans to leverage this investment to expand its operations globally and partner with more money transfer operators. This will increase the volume of transactions they process, ultimately reducing remittance costs for users across Africa. Additionally, simplifying international money transfers will streamline the process for senders and receivers.
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TerraPay’s Founder and CEO, Ambar Sur, emphasizes the long-standing and vital partnership with the IFC. This collaboration has been instrumental in further expanding their network and enabling technological investments that address real-world challenges. “Their support continues to be invaluable,” Sur states, “as we strengthen our infrastructure, expand our network, and invest in technology solutions that solve real problems.”
Sur further highlights the company’s commitment to financial inclusion across Africa. He anticipates deepening the partnership with the IFC to leverage its vast global payments network in empowering families, individuals, and businesses.
Collaboration for Transformation
TerraPay also plans to partner with Enza, a venture capital firm focused on financial inclusion. Enza’s executive director, Andrew Key, believes this collaboration will transform the financial experience for businesses across Africa, bringing many into the formal financial ecosystem for the first time.
This investment positions TerraPay to significantly reduce remittance costs, improve transaction speed and reliability, and ultimately empower individuals and businesses within Africa’s growing financial landscape.
