FREMONT, CA: TransferWise, a global money transfer service with headquarters in London, has recently disclosed a new $292 million secondary round funding that allows the investors to recognize and declare that the company is valued at $3.5 billion. This value depicted a hike of 200 percent in the funding when compared to the previous startup funding Series E round, where $280 million was collected.
The latest funding round increased the value of the company but brought no cash in as the existing investors and shareholders sold their shares or portion of their holding to streamline the investor base with those key people, whose ideas aligned with that of company.
The capital investors Lead Edge Capital, Vitruvian Partners, and Lone Pine Capital led the latest round of funding. Some existing investors expanded their holdings while investments were provided from funds managed by BlackRock.
The $292 million that was settled in the latest funding round is an arbitrary figure, which shows the value of the company when few of the shareholders liquidated their holdings, without considering an upper level of interest.
A move which the London Fintech companies were longing for, the regulatory board now changing in favor of the money transfer company, the outlawing of exchange rate mark-ups on international payments through EU’s Cross Border Payments Regulations has been mandated. Australia is also moving towards similar waters by enquiring the issue for consideration. With that being in motion, TransferWise now serves around 5 million customers for their personal finance globally, dealing about £4 billion monthly, and saving customers over £1 billion in bank fees. The service at present is eligible across 1600 currency routes and is accessible for 49 currencies.
TransferWise employs around 1600 people, spread over 12 offices worldwide and is looking to hire 750 more people in the coming year. The Expansion of the company is powered by the latest valuation being over $3.5 million, doubling the value of the company.