AAA Remitly registers IPO filing

Remitly registers IPO filing

Remitly, a US-based remittance services provider backed by internet company Prosus, insurer Prudential Financial and payment services firm Visa, has filed to raise $100m in an initial public offering.

The offering is set to take place on the Nasdaq Global Select Market later this year.

Founded in 2011, Remitly has built an online remittance platform focused on the global immigrant community that send money abroad regularly. The company’s customers completed approximately 31 million transactions in 2020.

Remitly generated $105m of revenue for the six months ending June 2020, which almost doubled to $202m in the same period the following year. It also incurred a net loss of $21.1m and $9.2m respectively, for those same periods.

Visa supplied an undisclosed amount of funding to Remitly in May 2021 as part of an extension to their existing partnership agreement.

The company had previously raised nearly $520m of total debt and equity funding. It received $85m in July 2020 round led by PayU, the payment processing subsidiary of internet group Prosus.

That round valued the business a $1.5bn and was also backed by Generation Investment Management, Owl Rock Capital, Stripes Group, DN Capital, Top Tier Capital Partners, Princeville Global and Threshold Ventures.

Generation IM led Remitly’ $135m series E round in 2019, which featured Prudential Financial, PayU, Owl Rock, Princeville, Schroder & Co Bank, Top Tier, DN Capital and Stripes.

PayU also led a $115m series D round for Remitly in 2017 that drew in capital from Stripes, DFJ and DN Capital.

The company’s early investors include the International Finance Corporation, Vulcan Capital, Trilogy Equity Partners, Bezos Expeditions, QED Investors, TomorrowVentures, Founders Co-Op and assorted individual investors.

PayU is Remitly’s largest shareholder with a 23.9% stake followed by Stripes (12.1%), Threshold Ventures (9.4%), Generation IM (8%) and Trilogy Equity Partners (6.2%).

Goldman Sachs, JP Morgan, Barclays, Citigroup, William Blair, JMP Securities, KeyBanc Capital Markets and Nomura have been appointed as underwriters for the offering.