TransferGo raises £ 37million as Revolut considers remittance market
Ondon-based international payments firm TransferGo has raised $ 50million (£ 37million) to fuel expansion in the booming cross-border money market.
Founder and CEO Daumantas Dvilinskas told Standard the money will fund new products and expansion, helping the company go public.
He said: “We have ambitious goals over the next five years to get this company to go public.
“The number one priority is to grow our customer base three to five times during this time … and to introduce new payment and financial options.”
The nine-year-old fintech services are mainly used by European migrant workers in the UK, Germany and Poland who return money home.
TransferGo promises to deliver money in 30 minutes and has 3.5 million customers in 160 markets.
The Series C funding round has been led by Russia-focused private equity giant Elbrus Capital and US-based VC Black River Ventures, bringing fintech to a total of $ 77 million raised to date.
The money transfer market is booming; World Bank data shows it was worth over $ 700 billion in 2020.
TransferGo grew 166% this spring despite the pandemic restricting movement, as the frequency and average volumes of transactions increased.
The start-up’s rise comes after rival money transfer company Wise debuted in London this summer in a direct listing valuing the company at around £ 8 billion.
Revolut, the $ 33 billion fintech firm, is also set to launch an offering.
Managing Director Nikolay Storonsky told The Standard his company is working on a feature that will allow customers to send money directly to Revolut cards, thereby avoiding the need for accounts or processors.
“What this means is that I can transfer my Revolut card to someone in India, Pakistan or anywhere in the world assuming it is MasterCard or Visa.” , did he declare. “It’s a service that disrupts traditional money transfer companies. That’s the bet we’re working on.”
Dvilinskas says its service will stand out from challenger bank products and be successful because it targets niche consumers.
He said: “Challenger banks are still pretty generic, they are a one stop shop for everyone … What we think is that the next wave will be segment specific financial institutions that really understand segment specific needs and geography needs.
“The needs of a Ukrainian migrant settling in Poland are quite different from those of an Italian migrant settling in the UK. This is where there are still many opportunities.
“The market for the segment is pretty much still open and we see a lot of opportunities, and we want to have enough liquidity to seize that opportunity.”