WorldRemit scoops $40 million investment
ONLINE money transfer platform, WorldRemit.com, has closed a $40 million investment from Accel Partners, a Silicon Valley investor in the likes of Facebook and Spotify, in a deal that represents one of the largest venture capital funding rounds to be completed in Europe.
WorldRemit’s online platform enables migrants and expats to send quick, convenient and low cost remittance payments to families and friends abroad.
Accel’s investment will support WorldRemit’s expansion into new geographies and the development of additional products and services.
The online platform, which enables the sending of as little as US$1 for low fees, has already proven popular with Zimbabwean expats and migrants around the world.
Said Ismail Ahmed, Founder & CEO at World Remit: “WorldRemit offers migrant workers and expats unparalleled speed, convenience and transparency when sending money home.
“We expect the online money transfer sector to account for approximately 30% of the remittance market in the next few years and that WorldRemit will be at the forefront of this change.
“We offer the most extensive range of pay-out options unmatched by any money transfer firm, including payments to mobile wallets and international airtime top up, which enable recipients to receive their money even where there is limited or no banking infrastructure.
“This faster, more flexible model is already the first choice for tens of thousands of Zimbabwean migrants sending money home to relatives and friends.”
He added: “Accel Partners with their global network and extensive expertise in the payments industry is the perfect fit for WorldRemit. We are excited to continue our rapid growth trajectory with their support.”
Harry Nelis of Accel Partners commented: “WorldRemit is moving remittance online, disrupting a traditionally offline business and democratizing payments.
“We are excited to be partnering with a team with the deep industry expertise that has enabled them to build the robust technology and strong compliance needed for a secure, trusted and world-class remittance business.”
According to The World Bank, $519 billion of remittance payments were made in 2012 of which $2.1 billion are estimated to have been made to Zimbabwe. Most remittances were handled via traditional players such as Western Union and MoneyGram, as well as a plethora of smaller and informal operators.