The famous European fintech startup TransferWise is valued at $5 billion after the announcement of the second round of share sale this Wednesday. The value of this deal crosses $319 Million. However, no new money comes into the company as it is the re-distribution of holdings owners. The chance of selling a part of the holdings was provided for employees and investors. That not only allows to earn for shareholders but to avoid issuing more shares.
The company did the same in 2019 May when shares worth $292 Million were sold. That time TransferWise’s worth jumped to $3.5 Billion.
Most noteworthy, TransferWise has reached such high valuation without the funds of fundraising within the last few years. In 2017 TransferWise got $280 Million in Series E round. Compared to its closest rivals – Revolut and N26 which are valued at $5.5 Billion and $3.5 Billion respectively, TransferWise got closer to the first one and run away from the second one. Both of the mentioned fintechs actively participated in fundraising rounds attracting hundreds of millions in investments.
On the other hand, TransferWise became profitable since 2017 while Revolut still reports losses. Klarna which is valued at $5.5 Billion reported profits from the very first days of operating and only this year the company has reported about facing losses for the first time.
TransferWise now has more than 8 Million users worldwide and processes more than $5 Billion each month. The company grows fast and is expected to grow its valuation in the future as well.
Fintech market has brought a lot of news within the last few years. It seems that COVID-19 pandemic accelerated some things lately and it is expected that a lot of fintech companies will face faster growth in the number of users. Especially, due to lowering popularity of using cash money.