Money Transfer Startup Afriex Expands into China, India, and Pakistan

Afriex, the Lagos- and San Francisco-based money transfer startup, has expanded into Asia’s three largest remittance destinations, China, India, and Pakistan, amid rising demand for low-cost, near-instant cross-border payments.

As reported by TechCabal, the move positions Afriex to better serve African traders and diaspora communities engaged in foreign trade or supporting families back home.

“Our money transfers to India and Pakistan are instant, just like sending money to a friend or paying your Uber driver, and 90% of our transactions are completed in under two seconds,”

said Tope Alabi, Afriex’s co-founder and CEO.

“Although on China’s side we are not yet at the same level of instant, but we’re getting close.”

Founded in 2019 by Alabi and John Obirije, Afriex enables users to send and receive money in local currencies between Africa and other regions, bypassing traditional systems such as SWIFT.

The startup has built a real-time, multi-currency payment infrastructure with local banking integrations, accessible via its mobile app.

The expansion comes amid a global surge in cross-border payments, fuelled by migration, trade, and remote work.

In 2024, the Asia-Pacific region accounted for around 26% of the global US$190 trillion in cross-border transactions.

India received an estimated US$120 billion in remittances in 2023, followed by China (US$50 billion) and Pakistan (US$27 billion), ranking them among the world’s top five recipient countries.

Afriex’s services cater to African SMEs and diaspora populations that increasingly import goods or remit money to Asia.

Alabi explained that fast, reliable payments are becoming essential as trade between Africa and Asia deepens.

He noted that steep remittance costs and limited infrastructure have long obstructed efficient money transfers.

To encourage adoption, Afriex waives transaction fees on transfers above US$10, generating revenue through foreign exchange spreads.

“We find the very best exchange rates from local currency to foreign currency, and then give that to our customers at a reasonable margin, and that makes sense for both the customers and for the business,”

Alabi said.

“If the exchange rates go up and down, the rates on our platforms will also go up and down to match the market and to match the reality.”

Nonetheless, the company faces hurdles in its new markets. Regulatory compliance and interoperability remain major challenges, particularly in China.

“Sending money to China is not as seamless as sending money to the person next to you,”

Alabi said.

“There are multiple challenges around Chinese remittances like documentation, name verifications, and the language, because everything is written in Mandarin and needs to be translated. Also, multiple businesses can have the same name or a bank account name with the vendor you wanted to send to.”

By contrast, Pakistan presents fewer barriers due to similarities with Nigeria’s banking environment, including parallel foreign exchange markets and low levels of SME digitisation.

Afriex is optimistic that it can achieve real-time payments to China by the end of 2025, in line with its services in India and Pakistan.

The company partners with local firms in each country to navigate compliance requirements and obtain critical information.

Having raised US$1.2 million in seed funding in 2020 and a US$10 million Series A round in 2022 at a US$60 million valuation, Afriex is now preparing for another fundraising round.