Remitly raises $220M to expand from money transfers to financial services, now at $900M+ valuation

TechCrunch | 7/10/2019 | Staff
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When it comes to financial services in emerging markets, remittances — people sending money to each other across international borders, often not to established bank accounts — continues to be one of the biggest, with the World Bank estimating that $529 billion was sent in and out of lower-income countries in 2018, up 9% over 2017. And today, Remitly, one of the bigger startups providing these services, is announcing that it has raised $220 million in funding to ride that wave.

CEO and founder Matt Oppenheimer said in an interview that the startup will use the money both to help it continue to keep growing that money transfer business, and to catch new opportunities as they appear, in the form of new financial services for the immigrants and migrants that make up the majority of its customer base.

Money - Form - Equity - Debt - Series

The money is coming in the form of equity and debt, specifically a $135 million Series E led by Generation Investment Management, and $85 million in debt from Barclays, Bridge Bank, Goldman Sachs, and Silicon Valley Bank. Owl Rock Capital, Princeville Global, Prudential Financial, Schroder & Co Bank AG, and Top Tier Capital Partners; and previous investors DN Capital, Naspers’ PayU, and Stripes Group all also participated in the equity round.

Oppenheimer said the equity will both be used to expand its remittance business but mainly to invest in that new wave of services it’s eyeing up. The debt, meanwhile, is to fuel the growth of its “express” fast-send option. “Today we can post funds, but we can also pre-fund for express transfers, and we wanted to have the capacity and the line of credit to be able to fund the pre-funding part, which is growing rapidly,” he said of the debt portion of the financing.

Today - Remitly - Services - Send

Today, Remitly’s services cover 16 “send” (originating) and 44 “receive”...
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