London based money transfer startup, WorldRemit has raised $45 Million as a debt round from Silicon Valley bank and TriplePoint Venture Growth BDC Corp.
The latest round, which comes a year after WorldRemit had raised $100 Million, will be used to expand the operations in developing markets along with strengthening the position in markets where WorldRemit is already doing good. WorldRemit faces competition from traditional players like Western Union and modern players such as Remitly, Currencyfair, Xoom etc.
The remittance market is expected to touch $610 Billion in 2016 and startups like WorldRemit are not leaving anything unturned to make it count. While talking to media, Ismail Ahmed, CEO & Co-Founder did not reveal the valuation. However, he admitted that the latest round was more or less a debt round which should have been completed with the last fund raise they had a year ago.
This might just be a good thing for WorldRemit in the time to come, considering the fact that even big startups are finding it hard to raise funds from the market. WorldRemit has till date, raised a total $192.7 Million which include other investors such as Accel and TCV.
With the raised funding, WorldRemit will focus on getting more markets under its service. Provided, the startup spent most of the last year signing contracts to enter new markets. It presently caters to the needs to 40 american states.
Coming on the mobile part, which seems on the interest list of WorldRemit, the CEO said that the main focus is on targeting the mobile money transfer market, which is set to become the next big thing. WorldRemit already has partnerships with over 25 mobile money transfer service and the startup is eying more partnerships across the globe to smoothen the mobile money transfer.
WorldRemit is also keen on working out contracts with banks and mobile operators to use users mobile number as proxy bank accounts to make the process simpler and hassle free.
Talking about the revenues, WorldRemit made $39 million in revenues with a growth rate of 56% compared to 2014 when the startup made $24 Million. Currently, the startup averages 400,000 transaction each month and the team is quiet hopeful of the number getting multiplied once they have few more markets and contracts under their belt.