Remitly team photo. (Remitly Photo)
TransferWise. WorldRemit. And now Remitly.
Seattle-based Remitly today announced a huge $220 million cash infusion on Tuesday, becoming the third mobile remittance company in the past two months to raise more than $100 million.
The investment includes a $135 million equity round and $85 million in syndicated debt financing, or a revolving credit line.
Generation Investment Management, a London-based fund co-founded by former vice president Al Gore that focuses on long-term sustainable investments, led the Series E round. Remitly has raised more than $311 million in equity to date and is now valued at just under $1 billion, according to people familiar with the deal, as it closes in on an elite group of Seattle-area “unicorn” companies.
Founded in 2011, Remitly uses mobile technology to help people send and receive money across borders, including immigrants who support families back home. Competitors include London-based WorldRemit, which raised $175 million last month at a near-$1 billion valuation, and TransferWise, another London company valued at $3.5 billion after a $292 million secondary funding in May.
Several trends are driving growth for these tech startups and interest from investors. Remittances to low-and-middle-income countries reached a record $529 billion last year, …read more