- TransferGo raised a $50 million Series C and is plotting an IPO in the next five years.
- The payments fintech serves migrant workers who frequently send money back to their families.
- We got an exclusive look at the pitch deck it used to raise the new funds.
- See more stories on Insider’s business page.
TransferGo, a startup that aims to make sending money home as easy as possible for migrants, raised $50 million in fresh funding and revealed plans to go public in the next five years.
The London company, which also enables businesses to transfer money internationally, says its remittance system is much cheaper and quicker than its established banking competitors, with transfers landing in a recipient’s account in as soon as 30 minutes.
Founded in 2012 by four migrants who felt that the market was underserved, TransferGo acts as a middleman so international payments can be processed locally for both the sender and the recipient.
It has so far been focused on building, but now it says it’s ready to scale.
TransferGo is among a growing number of European fintechs catching the eye of investors – the sector attracted more capital than any other industry vertical in 2020, luring in nearly $10 billion, the venture-capital firm Atomico found.
TransferGo’s raise is just shy of the $58 million Series C brought in by its competitor Wise, formerly TransferWise, in 2015. Wise was valued at £8 billion, or about $11 billion, when it hit the stock market earlier this year.
TransferGo’s founder and CEO, Daumantas Dvilinskas, told Insider he would prefer a “traditional route” to going public, not an SPAC merger – which has become popular over the past year – where a startup is acquired by a public special-purpose acquisition company.
“It’s too early to tell what the IPO market will look like in five years,” he said. “Yet what we see now is companies that have sound economics and good business behind them – not just hype – are able to go direct or through traditional ways of going public. This emerging SPAC world has died out probably as quickly as it emerged.”
TransferGo’s latest round was led by Elbrus Capital Fund III (a Russian fund that has backed HeadHunter, BlaBlaCar, and DPD Russia) and the European tech investors Black River Ventures.
The company said it had processed 13.5 million transactions, worth over $6 billion in money flow, by its 3.5 million customers across 160 markets. Europe, TransferGo’s most mature market, is the company’s most profitable, but connecting the bloc to the global east is “where growth is happening.”
TransferGo is set to use the fresh round to cement its presence in Africa and Southeast Asia. Though cash is “clinging on” in these markets, the pandemic has fueled a digital drive, and Dvilinskas is banking on its continuation, he said. “We’re taking it market by market, region by region, but our aspirations are to become the digital player connecting Europe to the globe,” he added.
TransferGo says it plans to increase its 250-person headcount threefold in the next two to three years across sites in Europe and emerging markets. Users can expect new overdrafts and credit features and potentially a decrease in the cost of local payments.
Dvilinskas said the fundraising took nine months, which was longer than anticipated, because of the pandemic.
Here’s the pitch deck TransferGo used to raise the latest round.