Remitly has announced an additional $85 million in financing, as the global demand for digital remittances continues to surge during the COVID-19 pandemic.

Returning investor Prosus’s PayU led the round at a $1.5 billion valuation, joined by returning partners DN Capital, Generation Investment Management, Owl Rock Capital, Princeville, Stripes, Threshold Ventures and Top Tier.

The funding will enable the business to expand its suite of financial services products and digital solutions.

“As the current health crisis continues to devastate the global economy and disproportionately impact developing countries around the world, immigrants are increasingly turning to digital solutions to address their financial needs and ensure they are still able to send critical funds home to their loved ones,” said Matt Oppenheimer, Remitly co-founder and chief executive.

“Remitly was born out of this necessity - to provide the underserved, underbanked and overlooked access to financial services anytime, anywhere," he continued, adding: "This latest round of funding will allow us to continue meeting our customers’ broad set of financial needs, and providing affordable, convenient and secure solutions as we navigate this uncertain time and beyond.”

While global remittances are projected to decline by 20 per cent in 2020 due to the economic crisis, Remitly has seen 200 per cent new customer growth year-over-year.

The company stated that customers who once relied on traditional remittance providers are now faced with quarantines, the shuttering of brick and mortar locations and limited access to traditional financial services. As a result, they’re shifting to digital solutions to continue sending money to loved ones across the world.

Laurent le Moal, PayU chief executive and member of Remitly’s board of directors, commented: “Since we first invested in Remitly in 2017 we have been impressed by its consistent track record of growth, including during the recent COVID turbulence.

"The business has scaled into an international organisation while keeping true to its mission of financial inclusion."

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