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Transferwise Valuation Jumps to $5 Billion After Secondary Share Sales

  • TransferWise announced its secondary share sales amounting to $319 million at a new $5 billion valuation.
  • The round allowed shareholders and employees to sell some of their shares to other existing and new investors.
  • TransferWise remains profitable, cash-generating, with a solid balance sheet, and needs no primary capital.
  • Visit The Financial Today’s homepage for more stories.

Today, TransferWise announced its secondary share sales amounting to $319 million at a new $5 billion valuation. This is a 43 percent uplift since May 2019. The round allowed shareholders and employees to sell some of their shares to other existing and new investors. TransferWise remains profitable, cash-generating, with a solid balance sheet, and needs no primary capital.

TransferWise delivers quickly on its goal to create the best way to move money across the globe. The company has expanded beyond its core money-transfer offering, with its borderless account replacing expensive, old-world international banking for its expats, freelancers, and travelers audience. The borderless TransferWise account holds more than £2 billion in existing deposits. The company issued one million debit cards since 2018.

TransferWise has seen an uplift in new customers searching for digital alternatives during the COVID-19 pandemic, with total volumes of transactions continuing to rise.

Employee share sales were settled using the Business platform TransferWise. The corporate product is one of the TransferWise’s fastest-growing elements and has recently announced partnerships with Xero and GoCardless. The company adds 10,000 business clients. Ten banks across three continents, including Monzo, N26, bunq, and Aspire in Singapore, are now providing TransferWise service to their millions of customers through the TransferWise Banks API.

To date, the company has received more than $1 billion in sales of primary and secondary shares. Existing investors Lone Pine Capital and new D1 Capital Partners led the round. Vulcan Capital also came on board as a new investor, attracted by the strong mission of TransferWise and accelerated growth. Baillie Gifford, Fidelity Investments, and LocalGlobe expanded their current holdings.

“There’s lots of talk about unicorns, but in reality, we’re building something even more rare. TransferWise is a fast-growing, profitable business, guided by a mission to build the best way to move money in the world – instant, convenient, transparent, and eventually free. Nine years in, we’re saving our customers £1 billion in hidden fees every year. That’s a start, but only a small dent in what banks collect. We’re still at the beginning of a long journey, and we’ve built a financially sustainable company to get there,” TransferWise CEO and co-founder, Kristo Käärmann said.

“We’ve been funded exclusively by our customers for the last few years and we didn’t need to raise external funding for the company. This secondary round provides an opportunity for new investors to come in, alongside rewarding the investors and employees who’ve helped us succeed so far,” he added.

The company recently announced new FCA permissions to offer savings and investment products in the UK via the TransferWise borderless account, with the new product set to launch in the next 12 months.

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