- TransferWise raises $280 million at valuation said to be around $1.6 billion.
- Asset manager Old Mutual Global Investors and Silicon Valley VC IVP lead the round.
- The money will be used to fund expansion in Asia.
LONDON — International money transfer service TransferWise has raised $280 million (£211.2 million) from asset manager Old Mutual Global Investors and Silicon Valley venture capital firm IVP.
TransferWise announced the fundraising on Thursday, saying in a release that the funding will be used to fund global expansion with a particular focus on Asia and India. The company opened its first Asian hub in Singapore in April.
The company also recently launched a “borderless” business account and has announced plans to launch a foreign currency card to compete with the likes of Revolut. Some of the funding will go towards this.
TransferWise is understood to be valued at around $1.6 billion (£1.2 billion) in the latest funding round, making it one of Britain’s most valuable tech startups.
The company, founded in 2011, allows people to cheaply and easily send money abroad online. TransferWise transfers over £1 billion across 750 currency routes each month. The business said in May it is on track to do £100 million in revenues this year and is profitable.
Taavet Hinrikus, co-founder and Chairman, TransferWise said in a statement: “£1 billion is just a slice of the market, which means millions of people are still being ripped off by banks and traditional currency brokers every day.
“It’s great to have the support of Old Mutual Global Investors and IVP in bringing fair and transparent financial services to more people through our Borderless account.”
The deal is only the second investment in a private company by Old Mutual Global Investor, which focuses on public markets.
Richard Watts, a fund manager at Old Mutual UK Mid Cap Fund, said in a statement: “Our team looks to invest in companies with the potential to significantly disrupt an industry.
“TransferWise, with its innovative product and customer-centric service, offers people a cheaper way to send money and is rapidly gaining market share from the traditional money transfer providers.
“The opportunity to invest now in a private company, with a hugely exciting global growth story, is particularly compelling and we believe this holding will benefit investors in the funds we manage.”
London-headquartered TransferWise is one of Britain’s most successful fintech startups. The company has now raised $397 million (£299.5 million) from investors including Richard Branson, renown Silicon Valley VC fund Andreessen Horowitz, Peter Thiel’s Valar Ventures, and Baillie Gifford.