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July 10, 2019updated 17 Jul 2019 10:10am

Remitly raises $135m to fund international expansion

By Douglas Blakey

Remitly raises $135m in Series E equity to expand its customer base worldwide.

In addition, Seattle-headquartered Remitly is securing an $85m revolving credit line from a number of banks.

Participating banks in the debt financing include Barclays, Goldman Sachs and Silicon Valley Bank.

Specifically, the debt facility will back Remitly’s premium services which offer instant money transfers. This enables the firm to pay out money to receivers before it has cleared through the global payments system.

Moreover, the latest Remitly fundraising reportedly values the firm at close to $1bn.

Remitly raises $135m of equity: funding led by Generation Investment Management

The equity component is led by Generation Investment Management. The investors have a dedicated focus on sustainable investment and long-term performance.

Other equity participants include: Owl Rock Capital, Princeville Global, Prudential Financial and Schroders.

Over the past year Remitly has expanded to 16 send and 44 receive countries. Furthermore, annual revenue growth is close to 100% for each of the past three years.

“It says something very powerful about Remitly’s mission and prospects, to have such an impressive roster of investors. They share our belief it’s possible to do good while building a strong, sustainable business,” says Remitly CEO Matt Oppenheimer.

“We are transforming the way that people send money home. We are bringing convenience, savings, security and new levels of customer service to an underserved community.

“At the same time, our business has been close to doubling year-on-year. This fundraising round will help us deliver better financial products to even more customers around the globe.”

Generation’s investment comes from its $1bn Sustainable Solutions Fund. Lucia Rigo, Director in Growth Equity at Generation, joins the Remitly board.

She says: “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 it has a commitment to improve 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.”

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