Zepz, formerly WorldRemit, a London-based international money transfer company, has raised $267 million in funding. Accel led the round with participation from Leapfrog, TCV (which backed Qonto and Celonis), and Coller Capital. Additionally, the International Financial Corporation, a global development institution and member of the World Bank Group, stated it will invest up to $20 million.
This new financing comes after the fintech raised $292 million in Series E round in 2021. shortly after it acquired cross-border payment firm Sendwave and rebranded.
The company intends to use the funds to expand operations and its business reach beyond the African markets. According to Bloomberg, Zepz has paused plans for an initial public offering (IPO), adding that Harry Nelis, a partner at Accel, mentioned investors are not in a hurry to join the public markets.
Idea behind Zepz
The company was founded in 2010 by Somali refugee and entrepreneur Ismail Ahmed, a former UN advisor, who was frustrated at the high transaction fees to send money to his family in East Africa. Joined by co-founders Catherine Wines and Richard Igoe, it became the UK’s first Black-founded fintech company to be valued at $1 billion and reach unicorn status.
Cross-border transfers made easy
It offers an online cross-border payments platform covering 150 countries. It lets people send money to friends and family living abroad, using a computer, smartphone, or tablet. It is a convenient, low-cost alternative to traditional money transfer companies that use high street agents and charge high fees. The company offers services enabling users to send money securely with options for bank deposit, cash collection, mobile airtime top-up, and mobile money.
Headquartered in London, Zepz has regional offices beyond the United States, including South Africa, Uganda, Kenya, Rwanda, Tanzania, and Zimbabwe.
While its current valuation is undisclosed, it was valued at $5 billion when it raised funds in 2021. Despite claiming to have reached full profitability in 2022, Zepz laid off more than 26% of its workforce, letting go of 420 employees from a total headcount of around 1,600 in early 2023. A few months later, it reduced its headcount by 30.
Mark Lenhard, Zepz’s Chief Executive Officer, 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.”