The funding strengthened Flywire's balance sheet and provided additional capital to support the company's vision to digitize payment across all sectors, including healthcare, education, and travel.
FREMONT, CA: Flywire, a global payment company, announced that it had acquired Simplee, an American SaaS company that develops software for the health care industry, to optimize the digital payments and patient engagement in healthcare and also to scale up its global payment services. Post-acquisition, Flywire's market share saw rapid growth with an increase in the healthcare payments business.
Apart from the acquisition, Flywire also announced a $120 million Series E investment round, which was led by Goldman Sachs. This latest round of funding brings the company's total capital to $260 million. Tiger Management and Adage Capital Management joined the funding as new investors with participation from existing investors. The funding strengthened Flywire's balance sheet and provided additional capital to support the company's vision to digitalize payment across all sectors, including healthcare, education, and travel.
"Flywire is uniquely built on a global payments network, which is the cornerstone of how we move billions of dollars across 200+ countries and 150 currencies, and an industry-leading payments platform," said Mike Massaro, CEO of Flywire. "This digital foundation enables us to develop vertical-specific applications that make payments more efficient and cost-effective for our global clients. The Simplee acquisition improves patient engagement and healthcare affordability and extends these capabilities to a broader customer base."
Ushered with new digital capabilities, the revenue generated from the global payment is expected to grow at a 5.9% CAGR from 2019-2028 to become a $2.5 trillion industry by 2028, according to Boston Consulting Group. Despite the growth figures, digital payment across many industries, like healthcare, is filled with flaws and poorly integrated point solutions. It is estimated that healthcare patients in the U.S. will spend $365.5 BN in out-of-pocket for healthcare services, which is about 70 percent of the size of the entire U.S. e-commerce spend, thus opening a massive market opportunity for Flywire.
"We are thrilled to lead the Series E round for Flywire," said Ashwin Gupta, Managing Director at Goldman Sachs' Merchant Banking Division. "They bring together a unique blend of a payments network, platform and vertical-specific solutions to completely digitize the payments experience for their clients across industries. We look forward to continuing to help accelerate Flywire's growth."