Money transfer startup WorldRemit being teed up for $5bn IPO

Group recently appointed ex-Paddy Power boss Breon Corcoran as its chief executive

Breon Corcoran (right) ,  chief executive, WorldRemit.

Breon Corcoran (right) , chief executive, WorldRemit.

 

Money transfer startup WorldRemit, which recently appointed ex-Paddy Power boss Breon Corcoran as its chief executive, is seeking to raise cash at a valuation of about $5 billion (€4 billion) ahead of a potential initial public offering (IPO), according to Bloomberg.

The London-based company is said to in talks with investors about a funding round, though the deal has not been finalised and terms may still change, the agency reported. The IPO could come as soon as 2022, it said. A representative for WorldRemit declined to comment. The cross-border digital payments service was created in 2010, inspired by founder Ismail Ahmed’s frustration at the high transaction fees other services charged to send money to his family in East Africa.

Last August, WorldRemit bought Africa-focused remittance app Sendwave in a $500 million deal that valued the combined companies at more than $1.5 billion, Bloomberg News reported.

Debut

The company had earlier considered a market debut this year, people familiar with the matter said previously.

WorldRemit now has more than 5.7 million customers across 70 currencies and 130 countries, according to the company’s website. It has raised money from investors including Accel, TCV, Project A and LeapFrog Investments. Companies that make it easier to move funds internationally, such as the UK’s Wise, have been attractive to investors as the global pandemic intensified demand for digital banking.

A World Bank report found that remittance flows remained strong last year despite the coronavirus outbreak, dropping just 1.6 per cent in low- and middle-income countries. - Bloomberg