US online money transfer company Remitly raises $220m

Fintech industry news : Seattle based online money transfer company Remitly has raised $220 million of new capital through a combination of equity financing and debt financing for enhancing its financial products and to expand its customer base across the world.

Through its Series E equity round, Remitly secured $135 million, while the remaining $85 million came from syndicated debt financing.

British investment management company Generation Investment Management led the Series E funding round in the US online money transfer company, with the former’s investment made through its $1 billion worth Sustainable Solutions Fund.

The other participants in the Series E round of Remitly are Owl Rock Capital, Princeville Global, Schroder & Co Bank, Prudential Financial, and Top Tier Capital Partners in addition to the fintech company’s existing investors such as DN Capital, Stripes Group, and PayU.

US online money transfer company Remitly raises $220m. Image courtesy of Stuart Miles/Freedigitalphotos.net.

Lucia Rigo – growth equity director at Generation Investment Management said: “We believe that the best businesses are those accelerating the transition to a sustainable economy.

“Remitly has approached their digital-first product with a deep passion for the customers they serve, and a commitment to improving transparency and efficiency in cross-border money transfer. Their organic growth, generated in recent years, is a testament to their impact. We look forward to partnering with the Remitly team to further accelerate their business and make essential financial services more inclusive.”

On the other hand, the debt financing for Remitly came from Goldman Sachs, Barclays, Bridge Bank, and Silicon Valley Bank, which doubled up as the administrative agent and main arranger of the syndicated debt financing.

Matt Oppenheimer – Remitly CEO and Co-founder said: “It says something very powerful about Remitly’s mission and prospects, to have such an impressive roster of investors participating in our Series E round. They share our belief that it is possible to do good while building a strong, sustainable business. We are transforming the way that people send money home, bringing convenience, savings, security and new levels of customer service to an underserved community.”

Launched in 2011, Remitly, which is a digital remittance company, claims to transfer more than $6 billion in annualized volume via its global money transfer network that spans Central Europe, Asia, Africa, and South America.

Over the past year, the online money transfer company claims to have expanded its service to 16 send and 44 receive countries with its annual revenue said to grown almost 100% for each of the last three years.

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