London-based money transfer startup WorldRemit has raised $US100 million (£64.8 million) in a funding round that values the company at around $US500 million (£324 million), sources familiar with the matter told the Financial Times.
The investment is a growing sign of confidence in the British technology scene.
Founded in 2010, WorldRemit offers a cheaper alternative to traditional remittance services like Western Union, letting customers send funds overseas. It currently offers 50 sender countries and 117 receivers, and plans to use the funds to expand this.
The funding round is led by Silicon Valley venture capital firm Technology Crossover Ventures (TCV), which has an A-list portfolio of previous technology investments. In the past its helped fund Facebook, GoDaddy, Expedia, Netflix, Spotify, VICE Media, and others.
This funding round is the second in less than 12 months for WorldRemit. VC firm Accel Partners previously invested $US40 million in the company. Accel also joins today’s funding round.
The news comes just weeks after TransferWise, another London money transfer startup, raised $US58 million in a round led by Andreessen Horowitz, another high-profile Silicon Valley investor group. Venture capitalist Ben Horowitz also joined the company’s board.
It’s a clear sign of increasing interest in FinTech products by investors. “The $US550 billion global remittance market is undergoing significant disruption with a clear shift to online and mobile solutions for international money transfer,” TCV General Partner John Rosenberg said in a statement. “We are delighted to partner with Ismail and the WorldRemit team, who are at the forefront in offering convenient, low-cost solutions, backed by a market leading technology platform, compliance infrastructure, and geographic footprint.”