Remitly, the provider of remittances and financial services for immigrants, has secured $85m to fund the further development of its offerings.
Having previously backed Remitly’s Series D and Series E rounds, PayU returned to lead the new capital injection that raised Remitly’s valuation to $1.5bn.
“Since we first invested in Remitly in 2017 we have been impressed by its consistent track record of growth, including during the recent Covid turbulence,” said Laurent le Moal, PayU CEO and member of Remitly’s board of directors.
“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’re a proud partner and investor.”
DN Capital, Generation Investment Management, Owl Rock Capital, Princeville, Stripes, Threshold Ventures and Top Tier also participated in the new raise.
Matt Oppenheimer, Remitly co-founder and CEO, said the new cash injection came at atime when the Covid-19 pandemic has caused demand for its services to surge. In fact, Remitly has enjoyed a 200% increase in new customer growth year-over-year.
“As the current health crisis continues to devastate the global economy and disproportionately impact developing countries around the world, immigrants are increasingly turning to digital solutions to address their financial needs and ensure they are still able to send critical funds home to their loved ones,” Oppenheimer said. “Remitly was born out of this necessity – to provide the underserved, underbanked and overlooked access to financial services anytime, anywhere.
“And our digital solutions have never been needed more than they are today. This latest round of funding will allow us to continue meeting our customers’ broad set of financial needs, and providing affordable, convenient and secure solutions as we navigate this uncertain time and beyond.”
Oppenheimer continued that the pandemic has meant people have been unable to rely on traditional bricks and mortar-based service providers. Consequently, he believed the digitalisation of the industry is closer than ever.
“The future of remittances has always been digital, but that shift has accelerated rapidly over the past few months with the demand for safe and convenient solutions to send money,” Oppenheimer said. “And with this investment, we are eager to continue innovating and building superior products that will meet our customers’ needs today and in years to come.”
This investment further strengthens Remitly’s relationship with its investment partners, all of whom share the company’s commitment to inclusive financial services and building sustainable businesses.
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