Sending money to friends and family abroad can be inefficient and expensive. Seattle-based startup Remitly has created a tool that aims to fix this problem — given the company’s growth and its most recent investment round, it’s certainly finding success doing so.
Remitly today announced a $12.5 million Series B round led by DFJ, with participation from DN Capital and existing investors QED Investors and Trilogy Equity Partners. The company will use the fresh funds to further develop its product and expand service to more countries. Total funding is now at $22.5 million.
Remitly currently allows users to make instant direct deposits within its network of banks in 45 U.S. states, India, and the Philippines. Last year, Remitly grew its customer base by 400 percent and helped transfer more than $100 million.
Remitly co-founder and CEO Matt Oppenheimer said that on average, competitors charge customers a 7.9 percent fee to send money internationally. Remitly, meanwhile, only charges an average of 2 percent as it eliminates the need for forms, codes, agents, and other fees typically associated with the international money transfer process.
“We have continued to execute on building the best mobile product to send money internationaly,” Oppenheimer said. “As a result, we’ve seen continued rapid growth rates.”
The company, a Techstars Seattle grad which is also backed by the likes of Founders’ Co-up and Jeff Bezos’ Bezos Expeditions, employs 70 — 30 in Seattle and 40 abroad — and plans to use the fresh cash to bring on more talent.
“Given how huge market is, we are really excited about being able to raise additional capital to not only grow in markets we are operating in, but also expand our product globally,” said Oppenheimer, who came up with the idea for Remitly while working at Barclays in Kenya.
GeekWire recently named Remitly one of Seattle’s 10 most-promising startups. As part of the new funding round, DJF Partner Bill Bryant will join Remitly’s board. Bryant detailed the reasons for DJF’s investment in Remitly here.