A parent company of African cross-border payment companies, World Remit and Sendwave, recently secured $267 million in funding. This funding round follows the fintech’s achievement of profitability two years ago.
Although the company did not disclose its valuation in this latest round, it was valued at $5 billion during its previous funding round in 2021, where it raised $232 million.
The funding round was backed by a mix of new and existing investors, with venture capital firm Accel leading the way. Other participants included Leapfrog, TCV, Coller Capital, and the International Financial Corporation from the World Bank Group committing up to $20 million in investments.
The funds raised will be utilized to expand the fintech’s operations in Africa, where it currently operates in over 150 countries, including South Africa, Uganda, Kenya, Rwanda, Tanzania, and South Africa.
This recent funding round marks a significant development for Zepz, following a pause in its IPO plans in 2022 due to accounting issues. Despite this, the company’s investors are not in a rush for a public listing, indicated Harry Nelis, a partner at Accel, one of the lead investors in this round.
The funding round also comes on the heels of a workforce reduction in May 2023 and November 2023, where 26% and 30 employees, respectively, were laid off due to redundancy and role duplication.
Founded in 2010 by Ismail Ahmed, WorldRemit allows users to send money globally from various countries to different destinations through bank deposits, mobile money, and cash pickups.
WorldRemit became the UK’s first Black-founded fintech to achieve unicorn status with a valuation of $1 billion. It acquired Sendwave in February 2021, and both now operate as payment brands under the Zepz group.
Mark Lenhard, the CEO of Zepz, foresees more growth opportunities for the company, especially in times of global unrest. Lenhard stated, “We certainly saw it during Covid. We’ll see it when there’s an earthquake. We’ll see it when there’s geopolitical unrest in the country. More money will flow in because people get concerned about their families, about their communities, and that’s their time of need.”