Join Transform 2021 this July 12-16. Register for the AI event of the year.

xoomXoom, a company that lets you go online to transfer money internationally, has raised $20.29 million in a fifth round of funding.

It’s just the latest in a wave of companies using the Web to shake up the payment-lending industry.

This six-year-old San Francisco company has now raised more than $50 million. To use it, you log on to Xoom’s Web site and pay between $3.50 and $12 per transaction, not exactly cheap — but considering the hassle and cost of other transfer methods, it’s competitive. Recipients don’t need to have bank accounts or Internet connections to receive fund.

It follows a $50 million round of capital raised by another PayPal competitor, Revolution Money (see our coverage), which is just about to launch.  That company, however, is promising free transfers within social networking settings. So transfers are tending toward zero, like Internet phone rates. (Bytes are almost free.)

This Xoom latest round was led by DAG Ventures, and included Fidelity Ventures, New Enterprise Associates and Sequoia Capital. Peter Thiel, former executive of online payment company PayPal is also an early investor. The financing was first reported by PE Hub.

A whole bunch of other new companies are trying to make inroads into the micro-payment or lending markets.


VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more
Become a member