WorldRemit, one of the global leading digital money transfer service providers, has raised $40 million to drive its next phase of global growth, aiming to serve 10 million customers connected to emerging markets, half of whom will be in Africa.
As part of the expansion, WorldRemit will enable customers in Africa to transfer money to 148 countries as easily as sending an instant message, using the WorldRemit app.
According to a release on the new investment circulated by Africa Press Organisation (APO), countries in Africa which now receive remittances through WorldRemit will become send countries. But most importantly, the new service will make sending money within Africa faster, easier and low cost. According to the World Bank, inter-Africa transfers are amongst the most expensive in the world.
Currently, money transfers to Africa account for more than half of WorldRemit’s total volume of transactions. The company currently handling 74% of remittances to popular mobile money services across Africa like MTN, Ecocash, Tigo Pesa, Vodafone M-Pesa and Airtel Money, thereby making it the global leader in mobile-to-mobile international money transfers.
Commenting on the new investment initiative, the company’s founder and Chief Executive Officer, Ismail Ahmed, explained that “this new funding will fuel our growth, and help bring our service to millions more customers across the globe. Africa is a crucial market for us and over the next few years, we will expand our services so customers can send and receive with WorldRemit, getting the benefits of our fast, secure online service.”
Since its last funding round in 2015, WorldRemit has launched 206 new services globally and has grown its transaction volume by 400%. For instance, last month the company became Arsenal FC’s first-ever online money transfer partner.
The Series C round was led by LeapFrog Investment, a dedicated equity investor in emerging markets, supporting fast-growth firms that deliver social impact alongside commercial returns. The round also had significant participation from existing investors Accel and Technology Crossover Ventures (TCV).
This latest funding round follows a Series B investment raised from TCV in 2015 and a Series A from Accel and Project A in 2014 – then one of the largest ever Series A rounds in Europe.