Money transfer start-up WorldRemit, which recently appointed former Paddy Power boss Breon Corcoran as chief executive, is looking to raise funds at a valuation of around $ 5 billion ($ 4 billion euros) before a possible initial public offering (IPO), according to Bloomberg.
The London-based company is said to be in talks with investors over a funding round, although the deal has not been finalized and terms may still change, the agency reported. The IPO could take place as early as 2022, he said. A representative for WorldRemit declined to comment. The cross-border digital payment service was established in 2010, inspired by founder Ismail Ahmed’s frustration with the high transaction fees charged by other services to send money to his family in East Africa.
Last August, WorldRemit purchased Sendwave, the Africa-focused remittance app, in a $ 500 million deal that valued the combined companies at over $ 1.5 billion, a Bloomberg News reported.
The company had previously considered making its market debut this year, people familiar with the matter previously said.
WorldRemit now has more than 5.7 million customers in 70 currencies and 130 countries, according to the company’s website. He has raised funds from investors such as Accel, TCV, Project A and LeapFrog Investments. Companies that facilitate international money transfer, such as UK’s Wise, have attracted investors as the global pandemic has intensified demand for digital banking services.
A World Bank report found that remittances remained significant last year despite the coronavirus outbreak, falling only 1.6% in low- and middle-income countries. -Bloomberg