TransferWise valuation hits $5bn after $319m share sale

TransferWise has completed secondary share sales amounting to $319 million at a new valuation of $5 billion.

This amounts to an uplift of 43 per cent since May 2019, with the latest funding round allowing shareholders and employees to sell some of their holdings to other new and existing investors.

To date, the company has attracted over $1 billion in primary and secondary share sale transactions. This round was led by existing investors Lone Pine Capital and new investors D1 Capital Partners. Vulcan Capital also came on board as a new investor, while Baillie Gifford, Fidelity Investments and LocalGlobe expanded their existing holdings.

During the COVID-19 pandemic, the money transfer FinTech has seen an uplift in new customers seeking digital alternatives, with overall transfer volumes continuing to grow.

The company claimed to be adding 10,000 business customers each month, with challenger banks like Monzo, N26 and bunq offering its service to their customers through the TransferWise for Banks Application Programming Interface (API).

Kristo Käärmann, chief executive and co-founder of TransferWise, said: “We’ve been funded exclusively by our customers for the last few years and we didn’t need to raise external funding for the company - this secondary round provides an opportunity for new investors to come in, alongside rewarding the investors and employees who’ve helped us succeed so far.”

The company recently announced new regulatory permissions to offer savings and investments options in the UK via the TransferWise borderless account, with the new product set to launch in the next 12 months.

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