Remitly, a mobile remittance fintech, announced yesterday that it had submitted a draft registration statement for a proposed IPO. Valued at $1.5 billion in July 2020, Remitly now intends to go public at nearly $5 billion. The company provides its customers with the ability to send and receive money across borders, without the fees and forms typically associated with established providers in the space.
On average, money transfer agents charge a 13% fee on remittance transactions. For those sending money home, the appeal of faster and less expensive money transfers is obvious. Remittances provide many with critical financial support and stability, and fewer fees mean that more is available.
In 2020 alone, $68 billion was sent in remittances from the U.S. to countries throughout the world. Remitly is disrupting the international money transfer space and stands to draw a large share of these transactions in the future.
For more on the topic, see this article from MSN:
“The mobile remittance company said Wednesday it confidentially submitted a draft registration statement with the SEC for its proposed IPO…
Founded in 2011, Remitly’s mobile technology lets people send and receive money across borders, including immigrants in the U.S. and U.K. who support families back home in countries such as the Philippines, India, El Salvador, and others. The service eliminates forms, codes, agents, and other fees typically associated with the international money transfer process dominated by Western Union, MoneyGram, and other longstanding providers.”
Overview by Laura Handly, Research Analyst at Mercator Advisory Group