Remitly, an online global remittance service, today announced it closed a $12.5 million Series B funding round. DFJ led the round with participation from DN Capital and existing investors QED Investors and Trilogy Equity Partners.
DFJ partner William Bryant will join Remitly's board of directors. Remitly will use the new capital to expand its team, scale marketing efforts, and broaden the service to include new countries.
While the global economy becomes more integrated through technology, international money transfers remain antiquated. There are more than 200 million people who live abroad and send money home. These customers use remittance services that are often riddled with high and hidden fees, a poor user experience, and limited mobile and web options. On average, companies charge customers a 7.9 percent fee to send money internationally. Remitly, by contrast, only charges 2 percent on average. Since inception, Remitly's highest priority has been creating the best possible customer experience. The company offers among the industry's most competitive foreign exchange rates, is upfront about rates and fees with customers and offers easy to use mobile applications.
Remitly is dramatically changing the way people send money internationally through its simple and affordable mobile-first platform. Since launching in 2012, the company has taken careful steps to build the fastest and most reliable product for customers, reaching widespread adoption in the targeted corridors of the Philippines and India. Remitly continues to enhance speed, reliability and usability by adding innovative features to its mobile apps and online services. As a result, the company has earned best-in-class customer satisfaction scores. Remitly was the first mobile payments company to implement Apple's Touch ID for iOS users, and gives Android users the ability to review foreign exchange rates in real time by simply adding a widget to their home screen.
Remitly's efforts to build the best possible product have paid off: in 2014, the Remitly customer base grew 400 percent year-over-year and customers are now sending more than $100 million a year using Remitly.
"While living in Africa, I saw firsthand the many barriers people faced when sending money to friends, family and businesses. It was incredibly difficult, expensive and the process was arduous and slow. We started Remitly because we knew we could change that," said Remitly CEO Matt Oppenheimer. "Remittance is a $125 billion opportunity in the U.S. and $500 billion globally. We have earned the trust of tens of thousands of people by transferring their hard-earned wages back to the people they care most about. And we're just getting started."
"At DFJ, we are always looking to back mission-inspired entrepreneurs who want to tackle large market opportunities with disruptive approaches," said William Bryant, partner at DFJ. "We found that perfect combination with Remitly, which is seeking to transform a $500 billion market with a service that saves consumers massive amounts of money, time and headache with the easiest to use, fastest and least expensive way to transfer money. The investment will help bring Remitly's service to every individual who regularly sends money back to friends and family in their home country."