The London-based money transfer startup WorldRemit is preparing to raise cash at a valuation of roughly $5 billion ahead of a potential initial public offering (IPO).
As Bloomberg News reported Friday (August 20), the company is in discussion with investors about the funding. Sources told Bloomberg details of the deal could change and that the IPO could come as soon as 2022, although the company had considered going public earlier this year.
WorldRemit was created in 2010, borne out of founder Ismail Ahmed’s frustration with the steep transaction fees he’d pay to send money to his family in East Africa, Bloomberg said.
Last August, the company purchased the Africa-focused remittance app Sendwave in a deal that valued the two firms at $1.5 billion.
Read More: WorldRemit To Buy Sendwave Amid Remittance Surge
The following month, WorldRemit launched the WorldRemit Transfer Tracker mobile app in 90 countries, designed to help recipients track their remittances.
The app comes with a “track my money” feature, made with the 1.7 billion people worldwide who don’t have access to a bank account or an account with mobile money providers, or who rely on cash pick-up agents.
Learn More: WorldRemit Debuts App That Tracks Money Transfers
According to the company website, WorldRemit boasts more than 5.7 million customers across 70 currencies and 130 countries. Past investors include Accel, TCV, Project A and LeapFrog Investments.
As Bloomberg noted, companies that help move funds internationally have become attractive to investors as the demand for digital banking rose during the COVID pandemic.
A report from the World Bank found that remittance flows stayed strong in 2020 even in light of the virus, dipping just 1.6 percent in low-income and middle-income nations.
The London-based cash switch startup WorldRemit is getting ready to boost money at a valuation of roughly $5 billion forward of a possible preliminary public providing (IPO).
As Bloomberg Information reported Friday (August 20), the corporate is in dialogue with buyers in regards to the funding. Sources advised Bloomberg particulars of the deal may change and that the IPO may come as quickly as 2022, though the corporate had thought of going public earlier this yr.
WorldRemit was created in 2010, borne out of founder Ismail Ahmed’s frustration with the steep transaction charges he’d pay to ship cash to his household in East Africa, Bloomberg stated.
Final August, the corporate bought the Africa-focused remittance app Sendwave in a deal that valued the 2 companies at $1.5 billion.
Learn Extra: WorldRemit To Purchase Sendwave Amid Remittance Surge
The next month, WorldRemit launched the WorldRemit Switch Tracker cell app in 90 nations, designed to assist recipients observe their remittances.
The app comes with a “observe my cash” characteristic, made with the 1.7 billion individuals worldwide who don’t have entry to a checking account or an account with cell cash suppliers, or who depend on money pick-up brokers.
Study Extra: WorldRemit Debuts App That Tracks Cash Transfers
In accordance with the corporate web site, WorldRemit boasts greater than 5.7 million clients throughout 70 currencies and 130 nations. Previous buyers embody Accel, TCV, Venture A and LeapFrog Investments.
As Bloomberg famous, firms that assist transfer funds internationally have turn out to be enticing to buyers because the demand for digital banking rose throughout the COVID pandemic.
A report from the World Financial institution discovered that remittance flows stayed robust in 2020 even in mild of the virus, dipping simply 1.6 % in low-income and middle-income nations.