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‘WorldRemit may exchange private status for public listing’
Posted on Thursday, 07 December 2017 13:54
WorldRemit, a cross-border digital money transfer service to rival the likes of Western Union, is starting to think about the possibility of a first-time share sale amid significant revenue growth, according to the chief executive.
Ismail Ahmed indicated the UK start-up, which is going to make a push into the US, has reached a point where it could hold an initial public offering (IPO) in several years’ time.
Ahmed did not give further details in his interviews with the media, merely telling Reuters: “I think the business is mature. We have reached the stage where we could be a candidate [. . .].”
He told the news provider that the company could finance itself from cash flows but is reinvesting potential profits to drive expansion, so a listing would not happen in 2018 and he stressed he hasn’t “put a date on it”.
The interviews have come on the back of an announcement that WorldRemit has just raised USD 40.00 million to accelerate its plan to serve 10.00 million customers connected to emerging markets by 2020.
LeapFrog Investments, with significant participation from existing investors Accel and TCV, led the series C funding round that brings the total investment to USD 220.00 million.
This latest equity injection reportedly brings the valuation of the digital money transfer services provider to the USD 670.00 million-mark.
WorldRemit said it can use the money raised to take advantage of opportunities in new markets, building on an existing footprint comprising transfers from over 50 countries to 148 destinations.
Since its last funding round in 2015, the company has launched 206 new services across the globe and has grown its transaction volume by 400.0 per cent.
WorldRemit reportedly expects revenue of GBP 60.00 million this year; this would be an increase from GBP 41.05 million in 2016 and GBP 27.20 million, according to Orbis, the company database published by Bureau van Dijk.
© Zephus Ltd