Business

A $319 million secondary offering pushes Transferwise's valuation to $5 billion

Led by D1 Capital Partners and Lone Pine Capital, the new round caused Transferwise's market value to increase by 43% compared to May 2019

TransferWise is valued at $ 5 billion in a new secondary investment round. Photo: Transferwise/ Courtesy
  • Transferwise has raised more than $1 billion in sales of primary and secondary shares since its foundation in 2011;
  • The new investment round was led by Lone Pine Capital and D1 Capital Partners. Vulcan Capital has also become an investor and Baillie Gifford, Fidelity Investments and LocalGlobe have expanded their stocks in the fintech.
  • According to the fintech, Transferwise has been registering ten thousand new commercial clients globally every month.

Transferwise, the global fintech focused on cross-border money transfer, announced this Wednesday a $319 million secondary offering. With this investment round, the company has now hit a $5 billion valuation.

“Achieving this valuation reinforces our commitment to building a transparent and economical business model, which is benefiting thousands of people. More than being a profitable and long-term company, we want to offer the best experience for those who need to send money around the world,” CEO and cofounder Kristo Käärmann stated to LABS.

“We are a company that has been profitable since 2017, which proves that we are on the right track by continuing to focus on customer needs.” The $5 billion market value is a figure 43% higher than the valuation reached in May 2019.

Led by D1 Capital Partners and Lone Pine Capital, the round allowed employees and shareholders to sell their shares to new interested investors.

“For some years, TransferWise has been maintained exclusively by its customers, without the need to raise external investments. This secondary round was an opportunity to attract new investors and reward both employees and investors who have supported us so far,” Käärmann added.

Kristo Käärmann, CEO and cofounder at Transferwise. Photo: Transferwise/ Courtesy.

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Employees liquidated their shares through the TransferWise for Business platform. One of the company’s fastest-growing products globally, Transferwise said that this business unit is likely to arrive soon in Brazil, since the company received approval from the country’s Central Bank to operate as a foreign exchange broker, earlier in June. Transferwise says it has 8 million clients worldwide.