Remitly Money Transfer Service Expands in Canada
- Transaction Banking , Payments
- 29.04.2016 10:45 am
Remitly closed a $38.5 million Series C funding round. Stripes Group led this round and was joined by Vulcan Capital, both new investors in Remitly. Existing Remitly investors also contributed to the round including DFJ, DN Capital, Bezos Expeditions and Trilogy Equity Partners, among others. Stripes Group partner Ron Shah will join Remitly’s board of directors as part of the financing. The new capital will be used to grow Remitly’s team and continue the company’s global expansion.
As an important step in expanding Remitly’s global footprint, the company announced today that Remitly is now available to customers in Canada. Canada is home to more than 7.4 million immigrants, many of whom still have family overseas. Residents of Canada transfer more than $23 billion annually, with $2.9 billion going to India and $2.1 billion to the Philippines.
“Since day one our strategy has been to bring our service to the largest addressable remittance markets in the world,” said Remitly CEO Matt Oppenheimer. “With this new financing, we are able to continue executing against that strategy by building a global footprint in the largest remittance corridors.”
Instead of relying on third-party aggregators, Remitly has built a proprietary network of banks and cash pickup locations to deliver funds quickly and securely overseas. It also has created a scalable core remittance platform that offers the unique ability to reliably deliver on promises to customers residing in the largest remittance markets. Around the world, people send more than $588 billion in remittances every year. According to the World Bank, remittance companies charge an average of nearly 8 percent in fees, while Remitly’s best-in-class digital product enables it to charge a small fraction of that while delivering a fundamentally better customer experience than legacy operators.
Remitly’s efforts to date have proven successful. Its customers are now transferring more than $1 billion annually and the company grew over 400 percent in the first quarter of 2016 compared to the previous year. As Remitly accelerates its global expansion, the company is also introducing a new logo emblematic of its continued focus and commitment toward customers.
“Remitly’s rapid growth in a large and well-defined hundred-year-old market is a great example of how a new generation of companies is using technology and leveraging mobile adoption to deliver better, faster, and more secure solutions to increasingly discerning consumers – all at lower costs,” said Stripes Group partner Ron Shah. “By doing this, Remitly is impacting people’s lives in a significant way and we’re excited to join the team as they continue to expand their global footprint.”