Cross Border Money Transfer Company Remitly Seeks $7 Billion IPO Valuation

Kimberly Redmond  |

Image source: Remitly

Money remittance company Remitly Global Inc is seeking a valuation of nearly $7 billion in its US initial public offering (IPO). 

In a filing Tuesday with the US Securities and Exchange Commission (SEC), the fintech said it plans to offer 7 million shares at a price range of $38 to $42 per share, with certain existing shareholders selling about 5.2 million shares.

Separately, PayU Fintech Investments, another of Remitly’s current shareholders, has agreed to purchase $25 million worth of the company’s shares via a private placement.

At the high end of the filing range, the company would raise gross proceeds of $294 million at a post-money valuation of about $6.8 billion.

Founded in 2011, Remitly is a cross-border remittance provider that enables customers to send and receive money to more than 135 countries around the world. The service eliminates forms, codes and agents typically associated with the international money transfer process.

The company was founded to facilitate the process of international money transfers for immigrants and their families.

In 2020, Remitly — which derives revenue from transaction fees and foreign exchange spreads — doubled its revenue to $257 million and cut its net loss to $32.6 million, according to the SEC filing.

Remitly ranks among the top 10 most downloaded peer-to-peer payment apps worldwide according to eMarketer, with competitors including PayPal, PayPal's Venmo unit, Zelle, Google Pay and Alipay. 

Remitly first signaled its IPO plans in May, when it hired investment banks to prepare for an offering. 

Its last transaction valuation was $1.5 billion in July, when the company raised $85 million, raising total private funding to nearly $400 million.

GeekWire noted that Remitly is among a handful of Seattle-area tech startups valued at more than $1 billion. 

Goldman Sachs and JPMorgan are the bookrunners on the deal, and Remitly plans to list on the Nasdaq Global Select Market under the symbol "RELY."

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Source: Equities News

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