International money transfer company Remitly Global filed for a public offering with the Securities and Exchange Commission on Monday, 30 August.
Remitly, which focusses on helping immigrants send money to their families in their home countries, aims to raise up to $100m in the IPO.
Sales and losses
In 2020, the Seattle-based company reported sales of $257m and losses of $32.6m. In the previous year, the company posted sales of $126.6m and a loss of $63.5m in 2019.
For the first half of 2021, the company reported revenue of $202.1m and a loss of $9.2m, in comparison to revenue of $105.1m and a loss of $21.1m for the first half of 2020.
According to the company’s prospectus, Remitly has more than five million customers, deals in 75 different currencies, and had a send volume of approximately $16.1bn for the twelve months ending June 30.
Co-founder and chief executive officer Matthew Oppenheimer wrote in the IPO that, “nearly half of the world’s population lives on less than $5.50 per day.”
The prospectus said the company’s vision is to “Transform the lives of immigrants and their families by providing the most trusted financial services on the planet.”
Cross-border remittance and banking are two of the largest financial services markets in the world.
According to the prospectus, the cross-border remittance market alone is estimated to be approximately $1.5trn in total migrant remittance inflow volume in 2020 and generates over $40bn in transaction fees globally.
According to the filing, Oppenheimer owns 4.8% of the shares, while co-founder and chief operating officer Joshua Hug owns 3.1%.
Other shareholders include PayU Fintech Investments at 24% of the shares, Stripes III at 12%, Threshhold Ventures at 9.4%, Generation IM Sustainable Solutions Fund III at 8%, and Trilogy Equity Partners at 6.2%.
Reuters reports that the IPO will see the company valued at $5bn. A story from 6 May noted, “It would be a significant jump from the $1.5bn valuation the Seattle-based company attained in its last private funding round in July 2020.”
Goldman Sachs, J.P. Morgan, Barclays, and Citigroup are listed among the underwriters for the offering.