Money

Cross-border remittance companies are definitely looking for a $ 7 billion IPO valuation

Image source: Remitly

Remittance company Remitly Global Inc is seeking an initial public offering (IPO) in the United States for a valuation of nearly $ 7 billion.

so Filing With the US Securities and Exchange Commission (SEC) on Tuesday, Fintech will offer 7 million shares in the $ 38- $ 42 per share range, with certain existing shareholders planning to sell approximately 5.2 million shares. Said that.

Separately, PayU Fintech Investments, one of Remitly’s current shareholders, has agreed to purchase $ 25 million worth of shares in the company through a private placement.

At the upper end of the filing range, the company raises a total revenue of $ 294 million with an ex-post valuation of approximately $ 6.8 billion.

Founded in 2011, Remitly is a cross-border money transfer provider that allows customers to send and receive money transfers to and from more than 135 countries around the world. This service eliminates forms, codes, and agents normally associated with the international money transfer process.

The company was founded to facilitate the international money transfer process for migrants and their families.

In 2020, Remitly, which earns from transaction fees and forex spreads, doubled its revenue to $ 257 million and reduced its net loss to $ 32.6 million, according to SEC Filing.

According to Remitly, it ranks among the top 10 most downloaded peer-to-peer payment apps in the world. eMarketer, PayPal, PayPal’s Venmo unit, Zelle, Google Pay, Alipay and other competitors.

Remitly first signaled that IPO plan In May, I hired an investment bank to prepare for the offering.

The company raised $ 85 million in its final transaction valuation of $ 1.5 billion in July, bringing total private funding to nearly $ 400 million.

GeekWire Remitly said it is one of the few tech startups in the Seattle area worth more than $ 1 billion.

Goldman Sachs and JP Morgan are lead managers of the transaction, and Remitry will be listed on the Nasdaq Global Select Market under the “RELY” symbol.

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