Money transfer startup Remitly has raised $220m in new funding, after closing its Series E round led by Generation Investment Management and securing debt financing.
The Seattle-based company has raised $135m of equity alongside $85m of syndicated debt financing.
The investment firm, co-founded by former US vice president Al Gore, tapped its $1bn Sustainable Solutions Fund to make the investment.
Other investors in the round included Owl Rock Capital, Princeville Global, Prudential Financial, Schroder & Co Bank AG and Top Tier Capital Partners. Existing backers DN Capital, Naspers’ PayU, and Stripes Group also invested in the round.
The debt financing was provided by Barclays, Bridge Bank, Goldman Sachs, and Silicon Valley Bank.
Remitly, a digital remittance company, provides a global money transfer network across Africa, Asia, Central Europe, Central America and South America.
The platform enables money transfers in a faster, easier, more transparent and less costly manner, while protecting users from fraud. A mobile app is also available from Remitly to further simplify the access to cross-border transfers.
The company processes transfers of over $6bn in annualized volume. Over the last year, the business has expanded its services into 16 send- and 44 receive-companies.
Generation Investment director in growth equity Lucia Rigo said, “We believe that the best businesses are those accelerating the transition to a sustainable economy. Remitly has approached their digital-first product with a deep passion for the customers they serve, and a commitment to improving transparency and efficiency in cross-border money transfer.
“Their organic growth, generated in recent years, is a testament to their impact. We look forward to partnering with the Remitly team to further accelerate their business and make essential financial services more inclusive.”
The company has planned to use the new round of funding to extend its presence internationally, it confirmed in a statement. Remitly will also invest in businesses beyond remittances.
Remitly raised $115m for series D funding round led by Naspers’ FinTech investment division PayU.
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