Dlocal, a Latin American fintech company, agreed to purchase Aza Finance, a Pan-African digital finance firm, for approximately $150 million.
In a strategic move to expand its presence and capabilities in Africa's rapidly growing cross-border payments market, Uruguayan fintech giant dLocal has announced the acquisition of Nairobi-based AZA Finance for an estimated $150 million.
dLocal, a company specializing in connecting global merchants to emerging markets, gains a strong foothold in Africa with this acquisition. AZA Finance, a leading fintech focused on cross-border payments and foreign exchange solutions in the region, will enhance dLocal's ability to serve global merchants targeting African markets.
For AZA Finance, the deal offers access to dLocal's extensive global network, capital, and technological infrastructure, enabling it to scale its services and expand beyond Africa more effectively. The consolidation with a major player that shares the focus on emerging markets can accelerate innovation in cross-border payment solutions tailored for African businesses.
The acquisition reflects a broader trend in the digital payments industry, with consolidation and specialization in cross-border fintech platforms aiming to reduce friction in international payments, particularly in emerging markets like Africa where financial inclusion and digital payments adoption are high priorities.
The deal significantly expands dLocal's footprint in Africa, a region where nine of its top 10 customers are already operating. In Nigeria, 77% of crypto users have converted local currency to stablecoins, indicating a high demand for such services.
The acquisition comes less than five months after the companies began a partnership. Carlos Menendez, dLocal's COO, stated that the acquisition positions them to offer innovative, efficient, and localized payment solutions.
The strategic significance of this move is evident. It strengthens dLocal's position as a leading facilitator of cross-border payments in emerging markets, while also accelerating AZA's growth potential. The deal exemplifies the increasing importance and dynamism of cross-border digital payments infrastructure in connecting global commerce with fast-growing regional economies.
The acquisition is pending regulatory approval. dLocal, which has been named one of the Americas' fastest-growing companies by the Financial Times, has partnered with PayPal, Temu, and Airtel, among others. With this acquisition, dLocal's business in Africa currently comprises 20% of its total operations, indicating a significant focus on the region.
[1] https://www.dlocal.com/ [2] https://www.aza.co/ [3] https://www.ft.com/content/876c290a-493e-4b81-9e8a-385a7c693653 [4] https://www.reuters.com/business/africa/dlocal-buys-aza-finance-expand-africa-operations-2022-05-04/ [5] https://techcrunch.com/2022/05/04/dlocal-acquires-aza-finance-to-expand-africa-operations/
- The acquisition of AZA Finance by dLocal, a company specializing in global payments, will bolster dLocal's ability to serve global merchants targeting African markets, leveraging AZA's expertise in cross-border payments and foreign exchange solutions.
- The consolidation of AZA Finance with dLocal, a leading fintech player, offers AZA access to dLocal's global network, technology, and capital, enabling AZA to scale its services and expand beyond Africa more effectively.
