Naspers said on Tuesday that its fintech investment division, PayU, is leading a funding round worth up to US$115m (R1.6bn) in Remitly, an independent digital remittance company focused on the North American market.
The Series D funding round, which is subject to regulatory and other approvals, has also attracted investments from existing Remitly investors Stripes Group, DFJ and DN Capital.
PayU CEO Laurent le Moal will join Remitly’s board of directors following the investment, Naspers said in a statement.
Remitly is focused on addressing the estimated $430bn flow from developed countries to low- and middle-income countries. The company’s digital money transfer platform allows customers to send money internationally securely at low cost. Its customers remit about $4bn annually.
The company offers its services to the “hundreds of millions” of households and small merchants around the world that do not have access to traditional banking services.
Other PayU investments include Citrus Pay and Kreditech. The company supports over 300 000 merchants and millions of consumers making online payments, Naspers said in the statement.
Remitly CEO Matt Oppenheimer said the latest funding round will allow the company to “supercharge” its growth.
Other investors include the World Bank’s International Finance Corp, Silicon Valley Bank, QED Investors, Trilogy Equity Partners, Bezos Expeditions, Founders’ Co-Op and TomorrowVentures. The company is headquartered in Seattle, with additional offices in London, the Philippines and Nicaragua.
Investment banking firm Financial Technology Partners served as strategic and financial adviser to Remitly on the transaction. — © 2017 NewsCentral Media