TransferWise, the global money transfer firm based in Europe recently announced new investment worth $280 million. Reports suggest that Silicon Valley-based IVP and Old Mutual Global Investors were the driving forces behind the investment round.
New and old investors pitch in for TransferWise
TransferWise has remained profitable since the start of 2017 and the recent funding led to the firm being valued at $1.6 billion. Some of the new companies participating in the round of investment include Sapphire Ventures (Silicon Valley), World Innovation Lab (Japan-U.S. venture firm) and Mitsui & Co Ltd. The round also saw participation from current backers like Baillie Gifford, Andreessen Horowitz, and Richard Branson. The total amount raised by the firm stood at a whopping $397 million.
An earlier report shows that the old company employees were allowed to sell off a part of their share in TransferWise in the current round. This includes founders Kristo Kaarmann and Taavet Hinrikus. Also, Seedcamp recently decided to cash in its remaining TransferWise stake while selling its initial two funds. These were sold to London-based venture capitalist Draper Esprit.
According to Hinrikus, the primary objective of such a huge round of investment is to create a healthier and more profitable balance sheet for TransferWise. This will help the company to pursue both new and old opportunities. The plan includes continued international expansion, focusing particularly on the Asia Pacific region and firing the growth of the Borderless account.
TransferWise boosting its Borderless account
The Borderless account will now have a consumer variation, including a debit card, and will be launched in Europe and the United Kingdom in the early part of 2018. This will lead to a natural comparison between TransferWise and the upcoming fintech startups like Revolut.
The core business of TransferWise is to transfer money from one part of the world to another, also known as ‘international money transfer’. The company believes that the larger the amount of money transferred through its network, the better. Both SMEs and individual consumers can do this through the TransferWise app, through the firm’s Borderless account or through third-party collaborations.
According to Hinrikus, for TransferWise, business and direct consumer global money transfer still needs a lot of work and strategizing. He recently made a trip to Brazil for business reasons and is especially pumped about the plans that the firm is cooking up for India.