Remitly, the mission-driven provider of remittances and financial services for immigrants, today announced an additional $85 million in financing as the global demand for digital remittances continues to surge during the COVID-19 pandemic. The funding will enable Remitly to expand its suite of financial services products and digital solutions at a time its customers need them most.
Returning investor Prosus’s PayU led the round at a $1.5 billion valuation. They were joined by returning partners DN Capital, Generation Investment Management, Owl Rock Capital, Princeville, Stripes, Threshold Ventures, and Top Tier.
“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 CEO.
“Remitly was born out of this necessity – to provide the underserved, underbanked and overlooked access to financial services anytime, anywhere. And our digital solutions have never been needed more than they are today. 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.”
Customers who relied on traditional remittance providers are shifting to digital solutions
While global remittances are projected to decline by 20 percent in 2020 due to the economic crisis, Remitly announces 200 percent new customer growth year-over-year. And 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.
“The future of remittances has always been digital, but that shift has accelerated rapidly over the past few months with the demand for safe and convenient solutions to send money,” Oppenheimer said. “And with this investment, we are eager to continue innovating and building superior products that will meet our customers’ needs today and in years to come.”
This investment further strengthens Remitly’s relationship with its investment partners, all of whom share the company’s commitment to inclusive financial services and building sustainable businesses.