Published: September 25, 2020
UK fintech TransferWise rocketed to a US$5bn valuation this summer when it completed a second share sale, as the Covid-19 crisis puts the spotlight on the ability to send currency quickly and easily across borders.
TransferWise, which launched in 2011 as a cheap cross border money transferring service, saw investors and employees offload US$319mn of shares at the end of July in a secondary share sale. The deal valued TransferWise at US$5bn – a 40% increase over its US$3.5bn valuation when it completed a similar exercise in May 2019.
The latest secondary share sale was led by existing investor Lone Pine Capital, and new investors D1 Capital Partners and Vulcan Capital.
“This secondary round provides an opportunity for new investors to come in,” said Kristo Kaarmann, TransferWise co-founder, “alongside rewarding the investors and employees who’ve helped us succeed so far”.
To date, the company has raised more than US$1bn in primary and secondary share sales.