US-based remittance services provider Remitly yesterday raised $85m in a funding round led by PayU, the payment processing subsidiary of internet company Prosus.
Generation Investment Management, Owl Rock Capital, Stripes Group, DN Capital, Top Tier Capital Partners, Princeville Global and Threshold Ventures also joined the round, which valued Remitly at $1.5bn.
Remitly operates an online remittance platform aimed in particular at underbanked customers in developing markets across Africa, Asia, central Europe and central and South America.
The company has experienced 200% growth in new customers year-on-year as lockdowns have shuttered brick-and-mortar money transfer services. The money will enable Remitly to expand the range of financial products it offers.
Laurent le Moal, chief executive of PayU and a member of Remitly’s board, said: “Today’s investment in Remitly marks a further step in our mission to become the world’s leading fintech investor.
“Since we first invested in Remitly in 2017 we have been impressed by its consistent track record of growth, including during the recent Covid-19 turbulence. The business has scaled into an international organisation while keeping true to its mission of financial inclusion.
“Our vision of a world without financial borders where everyone can prosper means we are always looking for opportunities to unlock financial services for underserved populations. Remitly is one of those opportunities and we are a proud partner and investor.”
Remitly has now raised approximately $519m in equity and debt financing.
The company previously obtained $135m in series E funding in July 2019 from PayU and insurer Prudential Financial. The round was led by Generation Investment Management and also included Owl Rock, Princeville, Schroder & Co Bank, Top Tier, DN Capital and Stripes.
PayU led a $115m series D round in 2017 that included Stripes, DFJ and DN Capital.
Remitly’s early backers include International Finance Corporation, Vulcan Capital, Trilogy Equity Partners, Bezos Expeditions, QED Investors, TomorrowVentures, Founders Co-Op and a range of private investors.
