TransferWise valuation jumps to $5bn in $319m secondary share sale

TransferWise today announces secondary sales amounting to a total of $319 million at a new valuation of $5 billion. This amounts to an uplift of 43% since May 2019. The round allowed shareholders and employees to sell some of their holdings to other new and existing investors. TransferWise continues to be profitable, cash generating, with a strong balance sheet, and is not raising any primary capital.

TransferWise is fast delivering on its mission to build the best way to move money around the world. The company has expanded beyond its core money transfer product, with its borderless account replacing expensive, old world international banking for its audience of expats, freelancers, and travellers. The TransferWise borderless account holds over £2 billion in current deposits. One million debit cards have been issued by the firm since 2018.

During the Covid-19 pandemic TransferWise has seen an uplift in new customers seeking digital alternatives, with overall transfer volumes continuing to grow.

Employee share sales were settled using the TransferWise for Business platform. The business product is one of the fastest growing elements of the TransferWise portfolio, and has recently launched partnerships with small business favourites Xero and GoCardless. The company is adding 10,000 business customers each month. Ten banks across three continents, including neobanks Monzo, N26, bunq, and from today, Aspire in Singapore, now offer TransferWise’s service to their millions of customers through the TransferWise for Banks API.

To date, the company has attracted over $1 billion in primary and secondary share sale transactions. The round was led by existing investors Lone Pine Capital and new investors D1 Capital Partners. Vulcan Capital also came on board as a new investor, attracted by TransferWise’s clear mission and accelerated growth. Baillie Gifford, Fidelity Investments and LocalGlobe expanded their existing holdings.

TransferWise in numbers

  • The company now serves 8 million customers worldwide, processing £4bn in cross-border payments alone every month
  • TransferWise saves its customers £1bn every year in bank fees
  • Almost 30% of its international transfers are instant (delivered in less than 20 seconds)
  • 2,500 currency routes, 54 currencies
  • Over 2,200 people in the team across fourteen global offices

Teddy Gleser, Partner, D1 Capital Partners said: “TransferWise has built an exceptional platform within the cross-border payments ecosystem by maintaining an unwavering focus on its customers and constantly innovating. We have been impressed by the extensibility of TransferWise’s platform, which now includes individuals, businesses and financial institutions among its customers. We are proud to partner with Kristo, Taavet, and the entire TransferWise team.”

Kristo Käärmann, CEO and co-founder, TransferWise said: “There’s lots of talk about unicorns, but in reality we’re building something even more rare. TransferWise is a fast growing, profitable business, guided by a mission to build the best way to move money in the world – instant, convenient, transparent and eventually free. Nine years in, we’re saving our customers £1 billion in hidden fees every year. That’s a start, but only a small dent in what banks collect. We’re still at the beginning of a long journey, and we’ve built a financially sustainable company to get there.

“We’ve been funded exclusively by our customers for the last few years and we didn’t need to raise external funding for the company. This secondary round provides an opportunity for new investors to come in, alongside rewarding the investors and employees who’ve helped us succeed so far.”

The company recently announced new FCA permissions to offer savings and investments options in the UK via the TransferWise borderless account, with the new product set to launch in the next 12 months.

Author: Lauren Towner

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