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Remitly posts positive results ahead of IPO

Remitly posts positive results ahead of IPO

Money transfer outfit Remitly has released an encouraging set of results ahead of its forthcoming IPO, doubling revenues to $257 million and halving its net losses to $32.5 million in 2020.

The solid performance has continued since, with the company pulling in $202 million in revenue for the first six months of 2021 at a $9.2 million net loss.

Goldman Sachs, JPMorgan Chase and Barclays have been brought in to advise on the potential IPO, which could value the company at $5 billion.

Founded in 2011, Remitly raised $85 million at a $1.5 billion valuation in a funding round last July and has since received a "sizeable" equity investment from Visa.

The firm has established itself as a rival to old-school providers such as MoneyGram and Western Union, as well as new players like Wise, in the multi-billion dollar global remittance market.

Since the start of 2020, Remitly has more than doubled its reach in the number of available receive countries, from 49 to over 100 - while also launching send functionality in Singapore.

The firm's proprietary global money transfer network is used to move over $6 billion in annualised volume from people in the west to friends and relatives in Africa, Asia, Central Europe and South America.

The company is also moving into new areas: last February it announced plans to launch a banking service, called Passbook, aimed at the 44 million first generation adult immigrants in the US.

The firm will trade on the Nasdaq under the ticker 'RELY'.

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