Secondary Funding Round for TransferWise Proves Successful, Increasing Value to $3.5 Billion
- TransferWise is now valued at $3.5 billion after a secondary funding round.
- The funding round was led by Lead Edge Capital, Lone Pine Capital, and Vitruvian Partners.
After a secondary funding round was led by several growth capital investors, the international money transfer company was able to double its valuation to $3.5 billion. The capital investors included Lead Edge Capital, Lone Pine Capital, and Vitruvian Partners, though the existing investors include Baillie Gifford and Andreessen Horowitz.
A secondary funding, as The Block writes, essentially means that the company has brought no new funds in, but the investors sold all or a portion of their holdings. Kristo Käärmann, the CEO and co-founder, stated that this change made it possible to connect with shareholders that fall “more in line with its stage of growth.” Käärmann added that this is “an opportunity,” allowing them to add more investors as the company progresses.
Presently, TransferWise has 5 million customers around the world. After being established in 2011, the company became relatively popular as a cheaper and simpler option against banks for consumers to send international money transfers.