Remitly raises $85 million as remittance demand surges

By Sunniva Kolostyak

Remittance and financial services provider Remitly has secured an additional $85 million in financing as a result of the global increase in demand for global remittance services during the Covid-19 pandemic.

Prosus’s PayU led the round at a $1.5 billion valuation, joined by DN Capital, Generation Investment Management, Owl Rock Capital, Princeville, Stripes, Threshold Ventures, and Top Tier – all returning investors.

Remitly, which caters specifically to immigrants, will use the funding to expand its suite of financial services products and digital solutions.

Matt Oppenheimer, Co-Founder and CEO of Remitly, said the future of remittances has always been digital, but this has accelerated over the past months. He commented: “As the current health crisis continues to devastate the global economy and disproportionately impact developing countries around the world, 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.”

Global remittances have been projected to decline by 20 per cent in 2020 due to the economic crisis, however Remitly has seen a 200 per cent new customer growth year-over-year. Moreover, global lockdowns have pushed customers towards digital solutions to continue sending money across the world.

“Remitly was born out of this necessity – to provide the underserved, underbanked and overlooked access to financial services anytime, anywhere. And our digital solutions have never been needed more than they are today. 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,” Oppenheimer said.

Laurent le Moal, PayU CEO and member of Remitly’s board of directors, added: “Today’s investment in Remitly marks a further step in our mission to become the world’s leading fintech investor. Since we first invested in Remitly in 2017 we have been impressed by its consistent track record of growth, including during the recent COVID turbulence.

“The business has scaled into an international organisation while keeping true to its mission of financial inclusion. Our vision of a world without financial borders where everyone can prosper means we are always looking for opportunities to unlock financial services for underserved populations. Remitly is one of those opportunities and we’re a proud partner and investor.”