WorldRemit raises $40m for growth

LEADING digital money transfer service, WorldRemit has raised $40 million to drive its next phase of global growth, aiming to serve 10 million customers connected to emerging markets. Half of these customers will be in Africa.

As part of the expansion drive, WorldRemit will enable customers in Africa to transfer money to 148 countries as easily as sending an instant message, using the WorldRemit app. Countries in Africa, which now receive remittances through WorldRemit, will become send countries.

“Most importantly, the new service will make sending money within Africa faster, easier and low cost,” said the firm in a statement.

According to the World Bank, inter-Africa transfers are amongst the most expensive in the world. Money transfers to Africa account for more than half of WorldRemit’s total volume of transactions. The UK headquartered company currently handles 74 percent of remittances to popular mobile money services across Africa like MTN, Eco-cash, Tigo Pesa, Vodafone M-Pesa and Airtel Money, making it the global leader in mobile-to-mobile international money transfers.

WorldRemit founder and chief executive officer, Ismail Ahmed, commented

“This new funding will fuel our growth, and help bring our service to millions more customers across the globe. Africa is a crucial market for us and over the next few years, we will expand our services so customers can send and receive with WorldRemit, getting the benefits of our fast, secure online service.”

Since its last funding round in 2015, WorldRemit has launched 206 new services across the globe and has grown its transaction volume by 400 percent.

WorldRemit was founded in 2010 by a UK-based entrepreneur from Somaliland, Ismail Ahmed, a remittance specialist and former compliance advisor to the United Nations. Personal experience of using money transfer agents convinced Ismail that technology could improve the sending process, enhance compliance and reduce costs to the customer.