Date: 22nd May 2019
The money transfer service, TransferWise, has become Europe’s most valuable fintech company in terms of its valuation which has hit $3.5 billion. This valuation was reached after its latest fundraiser event.
The company has made its presence in the market in which most firms were overshadowed by firms like Western Union. TransferWise provides a smoother online user interface as well as a reduced transfer fee which has attracted customers, pushing the start-up to new heights.
Officials from the company claim that the management has been longing to provide a clearer picture of the fee charges of financial institutions for international money transfer to its customers.
While the latest investment round raised quite some capital, the company is not using it to strengthen its statement of financial position. Conversely, it is allowing its existing shareholders and employees to put their stakes in the company up for sale.
In the secondary share sale, companies including Lone Pine, Lead Edge, and Vitruvian Partners bought a stake in the company. Besides that, existing shareholders, majorly Baillie Gifford and Andreessen Horowitz purchased more of the company’s stake.
Co-founder and Chairman of the start-up, Taavet Hinrikus, said that company is not in the need for more cash for its balance sheet. He added that profits have been flowing in the company for the last two years.
The company made a profit of $7.9 million in the year ended March 2018. Approximately 5 million customers currently use the services. Moreover, the company claims that it handles about $5 billion worth of transactions.
When asked about the future plans of the company, the Chairman said it does not desperately wish to go public in the near future.