TransferWise, launched in 2011, builds cross-border money-transfer services and multi-currency accounts that let customers hold funds in 54 currencies. The company processes about £4 billion in cross-border transactions every month and serves over 8 million customers worldwide. TransferWise grew in popularity due to the simplicity and low cost of its international transfers. It has been profitable and does not require outside capital for growth, having rejected cash-burning hypergrowth strategies. Since 2017 it has offered multi-currency accounts, and it recently received clearance to offer retail investment services in Britain, indicating service expansion plans. The company positioned the recent secondary share sale as a response to investor demand rather than an operating need for funds. TransferWise is a London-headquartered international money-transfer service that enables low-cost cross-border payments. The company supports 49 currencies across 1,600 currency routes and serves 5 million customers, processing £4 billion per month. It estimates customers save £1 billion annually in bank fees. Audited financials for the year ending March 2018 showed 77% revenue growth to £117 million and a net profit of £6.2 million after tax. TransferWise employs more than 1,600 people across 12 global offices and plans to hire 750 more over the next 12 months. Management says capital is not an issue, a public offering remains a long way off, and recent regulatory changes (including the EU outlawing exchange-rate mark-ups) are favorable for the business. TransferWise provides low-cost international money transfers for consumers and SMEs and offers multi-currency Borderless accounts. Its core products include direct consumer and business transfer services, third-party integrations, and the Borderless account aimed at businesses, sole traders and freelancers. The company serves over two million customers, supports 750 currency routes, handles more than £1 billion in transfers per month and has roughly a 10% U.K. market share. TransferWise has been profitable since early 2017. Management plans continued global expansion with a focus on the APAC region, further development of the Borderless account, and a consumer version with a debit card planned for the U.K. and Europe in early 2018. It is also partnering with banks such as N26 (and soon Starling) and pursuing markets including India and Brazil. TransferWise provides online money-transfer services and has built a strong brand around its product. The company is London-headquartered and employs over 600 people across the U.K., Europe and the U.S., including roughly 100 product staff. TransferWise is currently loss-making and reinvests all revenue into growth. Management says the business is closer to obtaining its own U.S. banking licence and prefers to control its own banking arrangements. The company noted that a U.S. money-transfer licence is required for each state, and that the fundraising climate has cooled, giving it a range of equity and debt financing options. TransferWise built a P2P money-transfer platform (founded in 2011 by ex-Skype and PayPal engineers) that matches transfers between users to avoid traditional bank fees and use mid-market rates. It targets expats, freelancers, sole traders, retirees living abroad and small businesses, with an average transaction around £1,500. The company reports about £3 billion ($4.5 billion) transferred through its platform and customer cost savings of more than £135 million versus traditional bank transfers. TransferWise currently operates 292 currency routes and plans to add 300 more in the next year. It is opening a U.S. office next month and will launch outposts in Germany and Austria in the coming months as part of a global expansion. The new funding is intended to ramp up its P2P transfer business and help bolster the company against competition from banks, PayPal and other startups.

Total raised

$1.0B

Funding rounds

8

Latest round

Equity

Latest activity

Jul 2020