Wise, the UK-based operator of a cross-border capital transfer service, revealed yesterday it plans to launch a direct listing that would give conglomerate Mitsui a chance to sell its shares.
The company plans to list on the London Stock Exchange, and the direct listing approach means it will not issue any new shares or hire underwriters, though existing shareholders will be able to sell stock on the market.
Formerly known as TransferWise, Wise runs an online platform that allows users to send money internationally without paying exorbitant fees.
The company increased revenue to £421m ($579m) in the year ending March 2021, up from nearly £303m the year before. Its net profit meanwhile rose 45% year on year to $28.9m.
Wise last raised primary funding in 2017 but was valued at $5bn in a $319m secondary share sale in July 2020 in which D1 Capital Partners, Vulcan Capital and existing shareholders Fidelity, Lone Pine Capital, Baillie Gifford and LocalGlobe bought stock.
Old Mutual Global Investors and IVP co-led a $280m series E round in 2017 valuing Wise at $1.6bn, investing with Mitsui, Andreessen Horowitz, Baillie Gifford, Sapphire Ventures, World Innovation Lab and Richard Branson, chairman of conglomerate Virgin, to increase its overall funding to $397m.
IA Ventures and Index Ventures led Wise’s $1.3m seed round in 2012 and joined Valar Ventures, SV Angel, Seedcamp, TAG and unnamed angel investors in a $6m series A round the following year.
The company subsequently closed a $25m series B round featuring TAG, Kima Ventures, Valar Ventures, IA Ventures, Index Ventures and Richard Branson in 2014.
The last four returned for a $58m series C round in 2015 that was led by Andreessen Horowitz and also backed by Seedcamp, before Baillie Gifford led a $26m series D round in 2016 that included unnamed existing investors, reportedly valuing Wise at $1.1bn.
Wise co-founder and co-CEO Kristo Käärmann said: “Wise is used to challenging convention, and this listing is no exception.
“We are 10 years into building a new way to move money around the world – faster, cheaper, easier and completely transparent. A direct listing allows us a cheaper and more transparent way to broaden Wise’s ownership, aligned with our mission.”
Käärmann is the company’s largest shareholder, with a 19.8% stake, followed by co-founder and co-CEO Taavet Hinrikus (11.5%), Valar Ventures (10.8%), IA Ventures (10.1%), Andreessen Horowitz (9.8%), Baillie Gifford (5.2%), D1 Capital Partners (4.1%) and IVP (3.9%).
