8.6 C
New York
Thursday, June 8, 2023
Home Fintechs TransferWise hits $5bn valuation

TransferWise hits $5bn valuation

TransferWise early investors sold some of their stakes in a $319 million secondary deal. With that, the value of the company was estimated at $5bn.

This liquidity round was led by a new investor D1 Capital Partners, and existing shareholder Lone Pine Capital. Other shareholders like Baillie Gifford, Fidelity Investments, and LocalGlobe have expanded their holdings in the company.

Read also: TransferWise is set to launch an investment feature as it lands license from FCA

With the company’s current $5 billion valuation TransferWise becomes one of Europe’s most valuable fintech unicorns with only Klarna and Revolut catching up. The new valuation also represents an increase of 43% since May 2019.

TransferWise was founded in 2010 and has been profitable since 2017. It serves about 8 million customers worldwide, processing around £4 billion in cross-border payments each month, across 2,500 currency routes and 54 currencies.

“We’ve been funded exclusively by our customers for the last few years and we didn’t need to raise external funding for the company. This secondary round provides an opportunity for new investors to come in, alongside rewarding the investors and employees who’ve helped us succeed so far.” says co-founder and current CEO Kristo Käärmann.

“We have been impressed by the extensibility of TransferWise’s platform, which now includes individuals, businesses and financial institutions among its customers,” says D1 Capital Partners’ Teddy Gleser.

Kaarmann and fellow co-founder Taavet Hinrikus both had the option to sell shares in this round, though TransferWise declined to disclose how much they sold.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

The Rapid Growth of India’s Neobanking Market: A Digital Revolution

This article explores the factors driving this growth and the future prospects of the neobanking sector in India.

FinTech Giant Stripe Sets Its Sights on the Credit Game

In a surprising move, Stripe, the leading FinTech company known for its robust payment processing platform, has announced its entry into the credit industry.

Responsible Lending in Today’s Economy: A Guide to Sustainable Financial Practices

In this blog post, we will delve into what responsible lending truly means in today's economy and explore its significance in promoting long-term economic stability.

Banks as Facilitators of Everyday Life: A Closer Look at Their Role and Impact

In this blog post, we will delve into the various ways banks serve as facilitators in our daily lives and explore the impact they have on individuals and society as a whole.