Remitly is raising another investment round as the Seattle startup continues to expand around the globe.
The latest funding comes in the form of equity and debt financing from IFC, a member of the World Bank Group, and previous investor Silicon Valley Bank.
Remitly, which describes itself as the largest independent mobile remittance company in the U.S., will use the fresh cash to help expand its platform to seven additional countries in Central and South America: Guatemala, Honduras, El Salvador, Nicaragua, Colombia, Ecuador, and Peru.
“Today’s announcement adds to the momentum around Remitly’s expanding global mission,” Remitly CEO Matt Oppenheimer said in a statement. “We are especially pleased to be backed by IFC and the World Bank Group who for many years have actively worked towards trust and transparency around global remittances — the two core values at the heart of our business.”
Remitly’s mobile platform lets users in the U.S. and Canada send money abroad to countries like India, the Philippines, Mexico, and others. The 150-person company — up from 100 employees in April — processes more than $1.5 billion in transactions per year. It operates with a network of more than 30,000 cash pick-up locations worldwide, including 8,000 in Latin America.
Remitly aims to stay ahead of the competition with lower fees and an emphasis on mobile. It eliminates the need for forms, codes, agents, and other fees typically associated with the international money transfer process.
Competitors, like Western Union and Xoom, charge customers a 7.9 percent fee, on average, according to the company. Remitly allows free transfers if the sender can wait three days for the funds to arrive. It charges a $3.99 flat rate for same-day transfers and credit card transfers include an additional 3 percent fee.
More than 90 percent of customers come back to Remitly when they need to send money, the company said.
Remitly last raised money in May when it reeled in a $38.5 million Series C investment round that pushed total funding to $61 million; it also launched in Canada at the time. The company — a Techstars Seattle grad formerly known as Beamit Mobile — also raised a $12 million credit from Silicon Valley Bank in September of last year.
Existing investors in Remitly include Trilogy Equity Partners, Bezos Expeditions, Founders’ Co-op, and DFJ. The company, which has offices in the Philippines and Nicaragua, did not provide a number on Thursday when asked for its total funding to date. It is not yet profitable.
Correction: This post has been updated with the correct number of cash pick-up sites.
