dLocal, the Latin American fintech unicorn that connects global merchants to emerging markets, is in talks to acquire Aza Finance (formerly BitPesa), a cross-border payments startup, as it continues its expansion into Africa.

“We’re proud to announce our intention to acquire AZA Finance, a leading fintech specialising in cross-border payments and FX solutions in Africa, pending regulatory approval, dLocal wrote in a LinkedIn post on Tuesday. “This move will reinforce our commitment to localised, seamless payment experiences across the EMEA region.” 

The company did not disclose the value of the acquisition, but Bloomberg reported the deal values Aza Finance at about $150 million, citing a person familiar with the matter, who asked not to be identified discussing confidential information.

dLocal frequently structures its acquisitions around transaction volumes rather than traditional equity stakes, according to a person familiar with dLocal’s acquisition strategy. Instead of taking ownership, the company invests in businesses through a combination of upfront cash payments and revenue-sharing agreements, that person said. This allows it to benefit from the acquired firm’s payment flows without assuming full operational control.

After capturing much of Latin American markets, dLocal has increasingly expanded into parts of Asia and Africa, with Aza Finance being its latest bet on the continent.  The acquisition gives dLocal access to key African markets where it previously had no presence, including Botswana, Mozambique, and Guinea.  Aza Finance operates in 17 African countries, while dLocal currently supports local payment processing in 13. Aza Finance will also gain access to dLocal’s global merchant network as a result of the deal.

The acquisition continues a run of fintech acquisitions on the continent. In January, Nigerian fintech LemFi acquired Irish currency exchange platform Bureau Buttercrane. In the same month, Stitch, a South African fintech startup that provides online payments infrastructure for large enterprises, acquired ExiPay. 

dLocal’s CEO, Pedro Arnt, said in a January interview that the company was analysing whether to buy a smaller fintech rival this year after the company itself was the target of takeover proposals.  Arnt sees the emerging markets payments industry as big enough to justify a return to valuations north of $20 billion again if DLocal can keep its leadership position in that space.

Founded in 2013 by Elizabeth Rossiello, Aza Finance was one of Africa’s earliest cross-border remittance startups. The company initially focused on leveraging Bitcoin and blockchain technology to facilitate faster and more cost-effective cross-border payments in sub-Saharan Africa. The company aimed to address the high costs and inefficiencies associated with traditional remittance methods by enabling Bitcoin-based transfers, allowing users to bypass conventional banking channels. 

“What began as a small team with a big vision has grown into a platform trusted by our amazing clients and partners across the continent. And today, I’m thrilled to share a major milestone in our journey: We’ve announced today that, pending regulatory approval, we’ve agreed to be acquired by dLocal!” Rossiello wrote in a LinkedIn post. 

As it expanded its services and geographic reach, it recognised the need to broaden its offerings beyond cryptocurrency transactions. In 2019, the company rebranded as AZA Finance to reflect its evolution into a comprehensive digital foreign exchange and payment platform. This rebranding marked a shift towards providing a full suite of FX and payment services across major African and G20 currencies. The company also secured $15 million in debt financing from the Development Bank of Southern Africa to support its growth initiatives. 

Over the years, AZA Finance has expanded its operations, managing over $2 billion in global transactions for SMEs, global organisations, and companies from more than 115 countries. The company’s growth strategy included acquisitions, such as  Spanish remittance company TransferZero in 2018 and South African cross-border payment firm Exchange4Free in 2021.