Africa-Focused Digital Payments Provider TerraPay Secures USD 95 M Debt Financing

TerraPay, an Africa-focused digital payments provider, has raised USD 95 M from the International Finance Corporation (IFC) and the British International Investment (BII) to boost access to affordable remittances and support livelihoods and business activity across Africa.

IFC arranged a USD 75 M financing package for TerraPay, which includes a USD 30 M loan from IFC’s own account, a B Loan of USD 15 M provided by asset manager ILX under IFC’s B Loan Program, and a combined parallel loan of USD 30 M from development finance institutions OP Finnfund Global Impact Fund I and BIO.

British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, will advance a USD 20 M senior secured loan to contribute towards the continuing lower cost, higher speed, improved reliability and accessibility of remittance transfers into the continent.

The financing will help TerraPay expand its operations by partnering with more global money transfer operators and by increasing the volume of transfers it processes across Africa. The expansion seeks to help reduce the costs, enhance speed, and simplify international remittance transfers.

Founded in 2014, TerraPay streamlines the remittance process by integrating and connecting major markets and money transfer operators such as Western Union, MoneyGram, and Ria, supporting household incomes and small businesses.