UK based cross-border fintech start-up TransferWise has initiated Europe’s most valuable transaction after the sale of shares by its early investors, staffs, and its two co-founders – that values the payments company at a whopping amount of $3.5bn.
As per the international financial Gurus, TransferWise has now contributed to expanding ‘the investor appetite for British fintech companies.’ Founded in 2011 by Taavet Hinrikus and Kristo Kaarmann, less than a fifth of their holdings in TransferWise has been sold now, followed by outrage on sending money between their native Estonia and London.
TransferWise functions in a way so that international customers can enjoy a cheaper exchange rate when it comes to sending money abroad. Also, through this transaction tool, customers are able to process international payments through multiple transfers where the processing rate is lower than a single and expensive payment system. As per reports, the 2011- the born company has acquired a huge customer base. The current numbers of customers they have are over 5 million people across the globe which allows a cash- handling of $5.1bn per month across its 12 global offices. However, the silver lining is TransferWise has planned to pull up its socks and go for a hiring spree. They have a plan to absorb a total of almost 800 people globally in the next year.
Reports are that the sale of shares by the Hinrikus and Kaarmann, the co-founders who were named as the two richest Estonians last year, would raise concerns on dealing with tougher times ahead of the company. The two owns a total wealth of almost €500m, says Aripaev, the local newspaper.
Aripaev also quotes Hinrikus saying that the sale proves that they are ‘on the right track’ and now would be able to enjoy doubling up the money and continue building a business following more liberated approaches compared to that of the past.
According to another co-founder Kaarmann, this sale is just the first rays of hope that came out as a wonderful truth. “TransferWise is experiencing phenomenal growth and this investment is a testament to that,” he uttered.
It took only 18 months for TransferWise to make their profits double since its last fundraising. “We don’t need to raise funds to continue on this trajectory, but we’re humbled by the persistent level of interest,” the co-founders said. The fintech firm has allowed its existing stakeholders to cash out some of their holdings. The step is risky, as suggested by expert financial executives, but has reduced the chances of going out to public for fundraising in near future.
Post- Brexit Europe has seen many ups and downs while the fintech firms have attracted some significant interest from investors. Both of the founders of TransferWise, therefore, have stated that Britain’s exit from EU and the decisions of Brexit has nothing to do with the company’s operations.
The company has about 1600 employees who significantly contribute in cutting the cost of cross-border money transfers among businesses and bank accounts.
