Nowadays, remittances have played a significant role in the growth of the economy. Over the past few years, the remittances have dramatically increase
Nowadays, remittances have played a significant role in the growth of the economy. Over the past few years, the remittances have dramatically increased to billions of dollars. According to the World Bank, $582 billion were remitted in 2015. Out these, $432 billion were sent to the emerging markets. In this case, there have been a couple of players in the remittance industry. Some of these companies include Paypal’s Xoom, Western Union, and World Remit.
As the industry grows, more players are more likely to venture into this lucrative business. In this case, one startup company has raised some funds to venture into the industry. This startup, known as Remitly, has competed with some of the prominent players in the industry.
Remitly, based in Seattle, is a remittance company co-founded by one of the former top executives of Barclays. This company raised $38.5 million through Series C round of funding. The fund drive was led by Stripes group, a new investor in Remitly. Moreover, the round had a participation of a number of investors such as Vulcan Capital-a Paul Allen’s investment group. Others included DN Capital, DFJ, Trilogy Equity Partners, Bezos Expeditions (a Jeff Bezos’ Investment firm) and others. The previous investors include TomorrowVentures and QED.
However, Remitly has raised total funds of $61 million to date. This includes the amount that was raised in the earlier rounds when Remitly was originally co-founded by Josh Hug, Oppenheimer, and Shivas Gulati. During this time Remitly was called Beamit.
When compared to some the remittance companies, Remitly is doing well in the industry. For instance, WorldRemit has raised a total of $148. Also, this company is valued at $500 million. Another remittance company is Transferwise. This company has raised more than $90 million and currently valued at about $1 billion. Conclusively, remittance is expected to achieve a tremendous growth in the future with annual transfers of billions of dollars.