WorldRemit joins forces with Sendwave for global digital payments
By Pavithra R
WorldRemit, the global online money transfer service provider, has announced that the firm has agreed to acquire Sendwave, a fast-growing app-based remittance company, in a cash and stock transaction. The transaction is subject to licensing and regulatory approvals and is expected to close in Q4 2020.
Founded in 2014, by Drew Durbin and Lincoln Quirk, Sendwave’s mission is to make sending money to Africa as easy and affordable as sending a text. The company has built a leading and rapidly growing digital remittance service to East and West Africa and is crossing borders to Asia, Bangladesh being the first receiving market. Its app sends instant, no fee transfers from the US, UK, and Canada to Kenya, Uganda, Tanzania, Ghana, and Nigeria with the best rates. Sendwave will continue to operate independently and retain its mobile applications, management, employees, brand, and key partners. Upon consummation of the transaction, it’s founders will continue to work on projects that bring access to financial services in Africa, on an independent basis.
“Both WorldRemit and Sendwave share a common purpose: allowing customers to easily and cost-effectively send financial support to families, friends, and businesses in other countries. WorldRemit has one of the broadest and most accessible networks for money transfers globally. Combining it with Sendwave, which offers instant, no/low-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal, and East Africa, addresses customer needs for fast and secure digital payments – especially given today’s travel restrictions and economic turmoil,” said WorldRemit CEO, Breon Corcoran.
In the past 12 months, ending 30 June 2020, WorldRemit and Sendwave have sent approx. US $7.5 bn in transfers, generating approx. US $280 mn in revenue. This represents a YoY growth of over 50% for the year ended June 2020 relative to historic combined revenues. On a pro forma basis, the combined company will have over 100 send licences including for every U.S. state, across a network that includes 50+/150+ send/receive countries and almost 8,000 payments corridors, a broad footprint serving a large, fragmented $715 bn remittances market that the World Bank estimates is growing at a 10% annual CAGR.
“Our users send money so their loved ones can pay for necessities like utilities, healthcare, and school fees. ‘Sendwave’-ing money is as easy as sending a text – one less worry for the hard-working and generous diaspora communities that we serve. We’re eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria. Together, we can achieve a better service for current and future users,” said Will Fogel, CEO Sendwave.
Recently, WorldRemit partnered with Mexican neobanks albo and Klar.
Established since 2010, London based WorldRemit is a leading FinTech providing international money transfer services. The company has a global presence in the United States, Canada, South Africa, Japan, Singapore, the Philippines, Australia, and New Zealand. The company is backed by Accel, TCV, and Leapfrog.
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