TransferWise Boasts $3.5 Billion Valuation
TransferWise has become the new leader in the European Fintech market place. The United Kingdom established company now boasts a valuation of $3.5 Billion. This new valuation comes after a string of deals and investments were made during the first quarter of 2019. This information comes from CNBC.
TransferWise currently has 1,600 employees and is growing exponentially every year. They are even beginning to rival like the likes of Western Union, shaking up the status quo for this banking landscape.
Secondary shares sold to boost the valuation
TransferWise recently sold off secondary shares to investors in a move to increase their valuation. This has allowed them to offer lower transferring fees and begin retooling their services. This move has already helped them attract new clients, with their transferring services now having five million registrations to date. Every month an every of $5.1 Billion in transactions is processed.
TaavetHinrikus, the Co-Founder and Chairman at TransferWise, commented on the companies boasted valuation by saying: “Eight years ago we had a dream, and in a way, the whole world was against us. And we’ve been able to step by step build the business and also change the environment around us to be much more consumer friendly.”
In total, the company was able to sell $292 Million in secondary shares. TransferWise purchased back shares from early investors and employees; the company then sold those shares to new investors. Notable investors include Lead Edge Capital, Lone Pine Capital and the European Private Equity Group. Early investors like Baillie Gifford and Andreessen Horowitz cemented their position in the company by purchasing additional stock.
The TransferWise Co-Founder plans to launch his company publically with an IPO eventually. However, the executive doesn’t plan on doing this for two or three years. It doesn’t follow with the set of plans that this company has put into motion. As of right now, TransferWise is focusing on prioritizing its services and growth as a company. They’ve got plans to hire 750 new employees over the next year and have plans to create new strategies that will dramatically influence their position on the global market.
TransferWise Debuts API
This information comes after TransferWise CEO, TaavetHinrikus, announced that the company would be releasing API Services to their clients. The API Service allows for clientele to have increased transparency with their transfers with faster processing speeds and lower-cost transfers.