TransferGo Raises $10 Million to Double Valuation and Expand Remittance Services in Asia
Expansion into Asia-Pacific Region
TransferGo, the UK-based fintech company known for its consumer platform for global remittances, has secured a $10 million growth funding round from Taiwan-based investor Taiwania Capital. This investment aims to support TransferGo’s expansion into the Asia-Pacific region.
Previous Funding and Valuation
This latest funding round comes after TransferGo raised $50 million in Series C funding in 2021. The company’s valuation has doubled following this new investment, with Dealroom valuing it at between $200 million and $300 million in September 2021. However, TransferGo declined to disclose its current valuation.
Profitability and Growth
Daumantas Dvilinskas, TransferGo co-founder and CEO, emphasized the company’s profitability, stating that they have been profitable for the last year with minimal burn. He attributed this success to focusing on the consumer experience, which has allowed them to achieve sustainability and become profitable.
"We’ve always been probably the most consumer-centric company in the space," Dvilinskas said. "This is evident in our Trusted Reviews — still better than others. We really build out the product for our consumers."
Market Dominance and Competition
TransferGo largely competes with market dominator Western Union, as well as newer upstarts such as Remitly and Wise. Despite the competitive landscape, TransferGo continues to attract customers from traditional players like cash-based services and banks.
"75% come from cash, banks and Western Union — that’s still the gorilla in the room," Dvilinskas said.
Regulatory Challenges
Last year, TransferGo faced a €310,000 fine from the Bank of Lithuania for AML (anti-money laundering) failings. However, they have since addressed these issues, closing procedural gaps and receiving positive feedback from regulators.
"We’ve been going through inspection and they found some procedural gaps that we closed by the end of the year," Dvilinskas explained.
Expansion into Asia-Pacific
The new investment will enable TransferGo to accelerate its expansion in the Asia-Pacific region. This move is driven by a desire to tap into growing demand for global remittances in these markets.
"We raised money because we wanted to expand faster in Asia Pacific. So that’s the next frontier for us," Dvilinskas said.
Market Trends and Future Outlook
The fintech industry continues to evolve, with a focus on innovation and consumer-centric solutions. TransferGo’s success is attributed to its commitment to building a product that meets the needs of its customers.
As the market grows, competition will intensify. However, TransferGo remains optimistic about its prospects, citing its profitability and strong growth as indicators of its resilience.
Conclusion
TransferGo’s $10 million growth funding round from Taiwania Capital is a significant development in the fintech industry. As the company expands into the Asia-Pacific region, it solidifies its position as a leading player in global remittances. With a focus on consumer experience and innovation, TransferGo is poised to continue its growth trajectory.
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About the Author
Mike Butcher is a seasoned journalist and editor with over 20 years of experience covering the tech industry. He has written for various publications, including TechCrunch, where he currently serves as Editor-at-Large.
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