- TransferWise is reportedly selling a stake in itself, according to a report published by Reuters
- The total amount it is seeking to raise is $300 million
- Rumours say that Goldman Sachs will be handling the investment round
TransferWise, an app that has made it easier for customers to send money abroad, is reportedly seeking $300 million worth of investments. The international money transfer startup has decided to “sell a stake in itself” to make the deal a lot sweeter, according to a Reuters report.
A number of notable individuals have previously invested in the company, including Richard Branson and PayPal founders Max Levchin and Peter Thiel. Observers say that the startup will likely get investment firms and venture capitalists to invest in the company faster than it did during its previous funding rounds.
It has been noted by experts that fintech firms that handle international payments are now more popular than before. Fintechs that help move cash across borders have disrupted the banking industry due to their affordable overseas transfer rates. They also move funds faster than traditional financial institutions.
Its last funding round was in the year 2017. At the time, the company was valued at $1.6 billion. Investors who put money in that year included venture capital firm IVP and Old Mutual Global Investors.
Raising $300 million will increase the firm’s valuation to $4 billion, a source says. The insider adds that Goldman Sachs will be handling the investment round. However, this piece of information on who is handling the fundraising has not yet been confirmed as Goldman Sachs Group did not respond to Reuter’s request for comment.
Established by Kristo Kaarmann and Taavet Hinrikus in 2011, TransferWise became well-known in the fintech world. After only eight years in business, the company has grown into a billion dollar operation. Based on recent numbers, the firm currently moves over $4 billion per month and has a customer base of over 4 million.
Due to its success, TransferWise now employs 1,400 people and has 11 offices around the world. The company says that its operating profit is £9.5 million on £117 million in revenue.
Just last week, the brand announced its partnership with PayNow. Reports note that the agreement between the two companies was signed after doing a series of tests.
TransferWise is reportedly concentrating on its expansion goals and partnering with other platforms is one of its ways to achieve its targets. During an interview, Timothee Ledure of TransferWise said: “When our customers told us they like PayNow for its speed and convenience, we added the implementation of PayNow to our engineering plans and worked to launch the feature as quickly as possible.”
It is noted by reports that TransferWise has not yet confirmed if the new funding round is true but observers say that an announcement from the fintech will likely be released in the coming days.
To get the latest news about the global payments industry, follow our magazine. To find out more about the British startup TransferWise, take a look at FX Compared’s thorough review of the brand and its services.
