IFC has officially launched a financing package of Ksh 9.6 billion (USD 75 million) for TerraPay, a digital payments provider. The partnership aims to boost access to affordable remittances and support livelihoods and business activity in countries across Africa.
The financing package includes a Ksh 3.8 billion (USD 30 million) loan from IFC’s account and a B Loan of Ksh 1.9 billion (USD 15 million) provided by asset manager ILX under IFC’s B Loan program. This is in addition to a combined parallel loan of Ksh 3.8 billion (USD 30 million) from development finance institutions OP Finnfund Global Impact Fund I and BIO.
The financing is expected to assist 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 will help reduce the costs, enhance speed, and simplify international remittance transfers.
In Africa, TerraPay customers can send money from 41 countries and receive from 40. African customers can not only send and receive funds within Africa, but also to and from markets across Europe and Asia.
Commenting on the launch of the new financing package, Ambar Sur, Founder and CEO for TerraPay said, “Our association with IFC goes back a long way and as we continue our journey towards growth, their support continues to be invaluable. This has fueled our mission, enabling us to strengthen our infrastructure, expand our network and invest deeply in technology and solutions that solve real-world problems.”
In 2019, IFC invested Ksh 1 billion (USD 8 million) as part of the Series A funding round for TerraPay. The latest investment aligns with the World Bank’s goal of achieving universal access to financial services, which is crucial to improving the lives of disadvantaged and vulnerable populations.