Uruguayan payments giant dLocal confirmed plans to acquire Nairobi-based AZA Finance for $150 million, according to a June 3 regulatory filing.

The deal, pending approvals, aims to strengthen dLocal’s African footprint while diversifying beyond its Latin American stronghold, which currently drives 75% of its $746 million annual revenue.

AZA Finance brings 15 million processed transactions totaling $9 billion since its 2013 launch, alongside expertise in 17 African markets.

DLocal, valued at $3 billion on Nasdaq, targets Africa’s $329 billion cross-border payments sector projected to triple by 2035.

The acquisition adds critical capabilities: AZA’s over-the-counter foreign exchange infrastructure, stablecoin networks, and remittance corridors across Nigeria, Kenya, and Egypt.

Integration could slash transaction costs by 20-30% in regions where traditional transfers take seven days and consume 4-12% in fees.

Africa’s digital payments market, forecast to hit $1.5 trillion by 2030, remains fragmented across 40+ currencies and regulatory regimes.

Uruguayan Fintech dLocal Targets Africa’s $1.5T Payments Market With $150M AZA Buy

dLocal’s COO Carlos Menendez cited “dynamic growth” potential, leveraging AZA’s licenses and 11-year local track record.

The move follows dLocal’s 2024 struggles in Nigeria, where currency devaluation caused an 80% revenue drop, offset by 318% growth in Egypt.

The deal aligns with industry consolidation as firms jockey for emerging market dominance.

dLocal’s 2024 results showed $25.6 billion in payment volume, with Africa-Asia regions contributing 29% of gross profit.

AZA’s founder Elizabeth Rossiello highlighted synergies in merging “Africa’s largest FX desk” with dLocal’s global merchant network, including clients like Amazon and Temu.

Regulatory hurdles loom, particularly in Nigeria, where authorities recently penalized unlicensed payment firms.

Both companies hold U.K. Financial Conduct Authority authorization, easing compliance across Africa’s evolving digital currency landscape.

Success hinges on integrating teams across eight countries while navigating currency volatility—a persistent challenge in markets like Ghana and Zambia.

For businesses, the merger signals faster, cheaper access to Africa’s 1.4 billion consumers. It also pressures legacy banks and rivals like Flutterwave, which dominate regional remittances.

As mobile money adoption hits 92% in Gulf states and stablecoins gain traction, dLocal’s bet reflects a broader shift: financial infrastructure tailored to frontier markets, not imposed from abroad.

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