TransferGo, the UK-based fintech best known as a consumer platform for global remittances, has raised a $10 million growth funding round from Taiwanese investor Taiwania Capital, aiming to expand in the Asia-Pacific region. The last Series C fundraising of $50 million took place in 2021.
TransferGo claims the new investment doubles its valuation to around $600 million, compared to the trading floor’s September 2021 valuation of $200-300 million.
Daumantas Dvilinskas, co-founder and CEO of TransferGo, told TechCrunch: “We were profitable last year, and the only burn was marketing, but the burn was very limited. We have achieved business sustainability and become profitable and still have proceeds from the last funding round. We are therefore profitable. We do not need external capital to grow.
However, he saw the opportunity to raise funds in Asia to expand there. “We raised funds because we wanted to grow faster in Asia Pacific. So this is the next frontier for us,” he said. “We still accept customers from incumbents: 75% comes from cash, banks and Western Union – it’s still the gorilla in the room. »
He attributes TransferGo’s growth to focusing on the consumer experience. “We’ve always been probably the most consumer-centric company in the space,” he said. “This is evident in our trusted reviews – always better than others. We really build the product for our consumers. So this 90% instant settlement, instant 24/7, consumers love that. And it’s not easy to do. It takes time. You need to solve existing technology problems.
However, everything was not simple. Last year, TransferGo was fined €310,000 by the Bank of Lithuania for anti-money laundering failings.
“We did an inspection and they found procedural deficiencies that we closed at the end of the year,” Dvilinskas told me. “The regulations are getting tougher, but we are happy to have closed the door on this, as we received positive feedback from them after the mediation was closed.”
TransferGo largely competes with market leader Western Union, but new entrants such as Remitly and Wise are also part of the competitive mix.
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