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In the last 12 months, since Remitly's last funding round, a lot has changed in the digital banking sector for startups. While some fintech startups have struggled to adjust to the pandemic's new challenges, Remitly has been able to handle the crisis well.
Fremont, CA: Mobile-first provider of remittances and financial services for immigrants, Remitly, secured USD 85 million in a funding round led by existing investor Prosus's PayU at a USD 1.5 billion valuation of the company. The investment round was also participated by returning partners Generation Investment Management, Owl Rock Capital, Stripes, DN Capital, Top Tier, Princeville Global, and Threshold Ventures. The company will use proceeds from the investment to expand its suite of digital financial services and products.
As the current health crisis continues to devastate the global economy and disproportionately impact developing countries, immigrants are increasingly turning to digital solutions to address their financial needs and ensure they are still able to send critical funds home to their loved ones," said Remitly co-founder and CEO Matt Oppenheimer.
In the last 12 months, since Remitly's last funding round, a lot has changed in the digital banking sector for startups. While some fintech startups have struggled to adjust to the pandemic's new challenges, Remitly has been able to handle the crisis well. This has resulted in a surge in digital remittance payments. The company experienced a 200 percent new customer growth year-on-year, despite the World Bank's forecasts suggesting a 20 percent decline in remittances in 2020 due to the ongoing economic crisis.
According to Oppenheimer, the company was born out of necessity and set up to provide the underserved, underbanked, and overlooked people, enabling them access to financial services. "Our digital solutions have never been needed more than they are today," Oppenheimer said. "This latest round of funding will allow us to continue meeting our customers' broad set of financial needs, and providing affordable, convenient and secure solutions as we navigate this uncertain time and beyond."
Remitly was established in 2011 and is looking to expand its portfolio to include additional critical financial services for immigrants. Remitly's Passbook offering is a banking solution that eliminates fees and other common barriers to creating a bank account and introduces new cross-border money transfer benefits. The company has offices in London, Kraków, Manila, and Managua.