Digital remittance platform Remitly has raised $85m to fuel growth and expand its suite of digital financial services products.
Around this time last year, Remitly raised a hefty $220m in equity and debt from a number of investors, bringing the start-up’s valuation to almost $1bn.
In the 12 months since Remitly’s last funding round, a lot has changed. Some fintech start-ups appear to be struggling to adjust to the challenging economic circumstances caused by the Covid-19 pandemic.
Remitly, on the other hand, said that it has been buoyed by the crisis, which has resulted in a surge of digital remittance payments. As July comes to a close, the start-up announced that it has raised $85m in funding to fuel its growth.
The company said that it has seen 200pc new customer growth, year-over-year, despite forecasts from the World Bank that estimated a 20pc decline in remittances in 2020 due to the economic crisis.
The start-up now plans to expand its suite of digital financial service products at a time when it says customers “need them most”. In addition to announcing the funding, the start-up also revealed that it is now valued at $1.5bn.
The latest investment was led by Prosus’s PayU, with investment from returning partners Generation Investment Management, Owl Rock Capital, Stripes, DN Capital, Top Tier, Princeville Global and Threshold Ventures.
Remitly co-founder and CEO Matt Oppenheimer said: “As the current health crisis continues to devastate the global economy and disproportionately impact developing countries, 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 that Remitly was “born out of this necessity” and was set up to provide underserved, underbanked and overlooked people with access to financial services, regardless of their location.
“Our digital solutions have never been needed more than they are today,” Oppenheimer said. “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.”