Xoom provides online international money transfers that let users send funds using debit or credit cards (bank transfers are also accepted) and charges fees that vary by country and amount. The service operates in about 30 countries and emphasizes privacy, claiming accreditation by third-party privacy organizations. Xoom has been expanding product access through a mobile site (m.xoom.com), which the company says accounts for a third of its Mexican sign-ups. It also announced a partnership with Walmart.com to enable online transfers to Latin America, Europe and Asia and has signaled a willingness to co-brand with offline partners. Management describes the business as growing rapidly and is using new capital to cover working capital needs and regular operating costs as transaction speed and volume strain its P&L. Keith Rabois and early investor Peter Thiel sit on Xoom’s board. Xoom is an international payments platform that allows users to transfer money to overseas accounts. Users can fund transfers with funds in their PayPal account. The service is positioned as a lower-cost alternative to providers like Western Union, with fees ranging from about 4% for small payments to roughly 1.1% for larger transfers. The article notes Xoom is useful when PayPal withdrawals (or PayPal itself) aren’t available in the recipient country and that it compares well in price to most major banks for wire transfers. Xoom raised a $20.29 million Series E led by DAG Ventures and joined by Fidelity Ventures, New Enterprise Associates, and Sequoia Capital. The Series E takes Xoom’s total funding to in excess of $50 million.

Total raised

$45M

Funding rounds

2

Latest round

Equity

Latest activity

Nov 2011