Fintech startup Remitly has raised $85 million in a brand new spherical of funding, bumping its valuation as much as $1.5 billion.
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Remitly facilitates worldwide cash transfers. Extra particularly, the corporate is targeted on serving to immigrants ship remittances again to relations nonetheless dwelling of their residence nation.
Remittances to low and middle-income nations reached a document of $554 billion in 2019, in keeping with the World Bank. However due to the COVID-19 pandemic and subsequent financial downturn, world remittances are anticipated to drop by 20 p.c this yr.
That makes Remitly’s mission much more vital. The banking system in the US wasn’t constructed with immigrants in thoughts, in keeping with Remitly CEO Matt Oppenheimer, so immigrants want one other environment friendly, reliable resolution to ship cash to their households.
“(Immigrants) move with a primary purpose of being able to support their families back home and I think it’s really important for the world to understand…the sacrifices they make and for them to understand what’s it’s like for our customers to be living in a pandemic where they can’t travel home to see their kids right now, they can’t travel home to see their families and they’re relied upon (to send money home),” Oppenheimer mentioned in an interview with Crunchbase Information.
Remitly facilitates cash transfers from 17 markets to 57 receiving markets and gives bank deposits, cash pickup choices, cellular cash supply, and residential supply. The corporate has seen its new clients develop 200 p.c year-over-year.
The brand new funding will likely be used to assist Remitly broaden into new markets and serve extra clients. The corporate may even be investing extra in Passbook, its digital banking product that was designed for immigrants.
Prosus’ PayU led the brand new funding spherical, which had participation from buyers together with Owl Rock Capital, Technology Funding Administration, Stripes, DN Capital, Prime Tier, Threshold Ventures, and Princeville International.
Illustration: Li-Anne Dias