London-based fintech startup WorldRemit has raised $40 million in a series C round of funding led by LeapFrog Investments, with “significant participation” from existing investors Accel Partners and Technology Crossover Ventures (TCV).
Founded in 2010, WorldRemit targets migrants with a money-transfer “remittance” service designed to help them send money to families back home. While incumbents such as Western Union already offer such a service, WorldRemit promises a number of advantages, such as native mobile apps, speed, lower fees, and enhanced transparency with guaranteed exchange rates.
Though WorldRemit caters to smartphone users with its app, those on the receiving end may not have a smartphone. Therefore the service offers an option to send the money as a cash pickup, airtime top-up, or bank transfer. The company also introduced support for Android Pay earlier this year.
The global remittance market contracted slightly last year according to World Bank data, dropping 1.2 percent to $575 billion globally, but it remains a huge market. Remittances received by developing countries amounted to around $429 billion.
WorldRemit currently claims customers in more than 50 countries, sending remittances to 148 different locations, and with its latest cash injection it plans to expand its service into new markets and “deliver innovative products and services,” according to a press release.
“This new funding will fuel our growth, and help bring our service to millions more customers across the globe,” said WorldRemit founder and CEO Ismail Ahmed.