Digital money transfer service WorldRemit has raised $40 million to drive its next phase of growth, supporting its plan to serve 10 million customers connected to emerging markets by 2020.
The Series C round was led by LeapFrog Investments, which has a mission for social impact investing, with returning participation from existing investors Accel Partners and Technology Crossover Ventures (TCV). The funding will be used to expand WorldRemit’s mobile-first, digital service into new markets, and deepen investment in existing markets, such as the United States.
The company’s U.S. headquarters, located in Denver, Colorado, will see significant expansion in 2018 to increase engineering capability and deliver innovative products and services. The U.S. is one of WorldRemit’s fastest growing send markets, with a 260 per cent YoY growth last year, and predicted to account for 40 per cent of WorldRemit’s global revenue by 2020.
Currently sending from more than 50 countries to 148 destinations, WorldRemit handles a growing share of the $600 billion migrant money transfer market – better known as remittances. The company also processes 74 per cent of international money transfers to mobile money accounts – an emerging-market technology whereby phone numbers act like bank accounts to hold funds.
“This investment is an opportunity to bring a global leader in digital remittances into the LeapFrog portfolio,” LeapFrog Investments partner Stewart Langdon said. “WorldRemit’s model is uniquely suited to scale and offers a best in class service that is vital to the livelihood of millions of consumers in LeapFrog’s core markets. The company also has a huge potential to expand globally – a combination that puts it at the heart of our profit with purpose philosophy.”