Latin American fintech company dLocal set to acquire African counterpart Aza Finance for $150 million
In a strategic move to bolster its position in the digital payments and cross-border finance industry, Latin American payments giant dLocal has announced its acquisition of AZA Finance, a cross-border payments platform focused on Africa, for an estimated $150 million. The deal, pending regulatory approval, marks dLocal's first major acquisition outside Latin America and significantly expands its footprint in Africa, one of the fastest-growing markets for digital payments and remittances.
AZA Finance, renowned for building Africa's largest and most efficient foreign exchange trading desk for both fiat and stablecoin currencies, offers liquidity in African and G20 currencies to various clients including fintechs, banks, telcos, and NGOs. By acquiring AZA Finance, dLocal gains access to this advanced FX infrastructure and deep regional licensing network, enabling it to offer more efficient cross-border payments and financial services across Africa.
The acquisition strengthens dLocal's competitive edge in Africa, a rapidly growing frontier market for digital payments. It also aligns with dLocal's commitment to Africa and frontier markets, enhancing its ability to connect African businesses to global markets and vice versa. The move is expected to substantially strengthen dLocal’s position as a key payments player in Africa and the broader digital payments industry.
The acquisition significantly expands dLocal's focus on improving treasury operations and payouts, a crucial aspect in Africa's digital payments landscape. In Nigeria, 77% of crypto users have converted local currency to stablecoins, indicating a growing demand for such services. The deal may lead to an expansion of stablecoin and crypto-related services, particularly in high-adoption markets like Nigeria.
Carlos Menendez, dLocal COO, expressed his enthusiasm, saying, "We are well-positioned to offer innovative, efficient, and localised payment solutions." Elizabeth Rossiello, AZA founder, shared similar sentiments, stating that the deal merges "Africa's largest FX trading desk" with a "massive global platform."
dLocal will integrate AZA's team and technology, tapping into their 11 years of regional experience. The acquisition comes less than five months after the companies began a strategic partnership, combining dLocal’s robust cross-border payment infrastructure with AZA’s foreign exchange and licensing capabilities. This integration will significantly expand market reach and payment processing capacity.
The acquisition increases dLocal's focus on Africa, which currently makes up 20% of its business. Notably, dLocal's top 10 customers are primarily active in Africa. The company has also partnered with prominent players like PayPal, Temu, and Airtel. Recently, dLocal has been named one of the Americas' fastest-growing companies by the Financial Times.
The acquisition is expected to significantly boost dLocal's remittance and cross-border payment volumes, positioning the company to capitalise on the continent’s increasing digital payment activity while leveraging AZA’s expertise in overcoming cross-border payment challenges unique to Africa, such as liquidity management and regulatory compliance. The move underscores dLocal's broader mission to facilitate frictionless global digital commerce.
- The acquisition of AZA Finance provides dLocal with access to advanced FX infrastructure and a deep regional licensing network, enabling them to offer more efficient cross-border payments and financial services across Africa.
- The deal merges Africa's largest FX trading desk, AZA Finance, with dLocal's robust cross-border payment infrastructure, which is expected to significantly expand market reach and payment processing capacity.
