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TransferWise, which makes it cheaper and simpler for consumers
and small businesses to send money internationally online, will
use the cash injection to expand its services and global
presence, it said on Thursday.
The new round of funding values TransferWise at more than $1.6
billion, according to a source familiar with the matter.
Sapphire Ventures joined the round, as did existing investors
Andreessen Horowitz, Baillie Gifford and British billionaire
Richard Branson.
Founded by Estonian friends Taavet Hinrikus and Kristo Käärmann
in 2011, the startup transfers around $1.2 billion in funds for
customers monthly. It became profitable for the first time this
year.
"TransferWise is in a pretty strong place today, we are moving
significant amounts of money on a monthly basis," Matthew
Briers, finance director at TransferWise, said in an interview.
"But we are still pretty tiny in the grand scheme of things,
there are still many trillions of dollars that are moving
cross-border."
The company plans to use the funding to expand a recently
launched service that enables small businesses to hold money in
different currencies they may later need. Similarly to having
bank accounts in different countries, this is aimed at helping
businesses spend less on conversion fees and hedge against
exchange rate fluctuations.
TransferWise is looking to offer this to consumers in the coming
months and launch a debit card connected to the accounts. This
and other initiatives will require more engineering staff,
Briers said.
The company, which recently set up a regional hub in Singapore,
estimates it will double its headcount from 800 now over the
next 18 months.
It currently serves more than 2 million customers with more than
750 currency routes, and plans to expand to India, as well as
Argentina, Chile and Peru.
(Reporting by Anna Irrera; editing by Susan Thomas)
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