TransferWise Raises €262 Million Secondary Round

London-based money transfer startup TransferWise has raised €262 million in a secondary financing round – taking the FinTech firm’s valuation to €3.14 billion. The funding round was led by growth capital investors Lead Edge Capital, Lone Pine Capital and Vitruvian Partners. Existing investors Andreessen Horowitz and Baillie Gifford also increased their interest in TransferWise, whilst BlackRock also contributed funds.

Rewards for Initial Investment

TransferWise is a money transfer service allowing private individuals and businesses to send money abroad without hidden charges. Founded in 2010, the FinTech startup offers customers a low-cost alternative to traditional means of transferring money overseas.

Overall, the funding round saw no new shares issued or capital raised. The purpose of the round was essentially a way for early investors and employees to cash in by selling some of their stock to newer investors.

TransferWise On The Up

TransferWise says it now has 5 million customers worldwide, processing €4.5 billion every month. Every year it estimates it saves customers €1.13 billion in bank fees. The service is currently available for 49 currencies.

For the fiscal year ending March 2018, TransferWise reported a 77 percent revenue growth to €133 million. That revenue worked out at a profit of €7 million after tax.

The startup also plans to add a further 750 new employees to its team over the next 12 months. Currently, TransferWise boasts an existing team of 1,600 employees across 12 offices worldwide.

Co-founder and CEO of TransferWise, Kristo Käärmann, gave his reaction to the investment, whilst serving a reminder about the healthy position that the startup is in: “TransferWise is experiencing phenomenal growth and this investment is testament to that. “We don’t need to raise funds to continue on this trajectory, but we’re humbled by the persistent level of interest in joining our mission.”

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