London-based fintech unicorn Zepz, formerly known as WorldRemit, has raised $267 million from new and existing investors to expand its global cross-border payments platform.
Zepz’s fundraising round was led by Accel, with participation from Leapfrog, TCV, and Coller Capital, as first reported by Bloomberg. The International Financial Corporation, a member of the World Bank Group, has also committed to invest up to $20 million.
Zepz not disclose its valuation in this round but was valued at $5 billion after its $292 million Series E round in 2021.
Simplifying Money Transfers
Founded in 2010 by Somaliland-born entrepreneur Ismail Ahmed,, Zepz was the UK’s first Black-founded fintech company to reach unicorn status.
Frustrated by high transaction fees when sending money to his family in East Africa, Ahmed launched Zepz to provide a more affordable remittance service.
Now operating in over 150 countries, Zepz has offices in the US and across Africa, including in Kenya, South Africa, and Zimbabwe.
The company’s platform allows users to send funds securely via bank deposit, cash collection, mobile airtime top-up, and mobile money, offering an alternative to traditional, more expensive money transfer services.
Future Plans: IPO on Hold
According to Bloomberg, investors are in no rush to take the company public, given the volatility in the market. Despite achieving profitability in 2022, Zepz faced challenges, including cutting 26% of its workforce earlier this year.
Still, Zepz remains focused on growth and acquisition in the remittance industry as more customers shift to digital platforms.
“We certainly saw it during COVID. We’ll see it when there’s an earthquake. We’ll see it when there’s geopolitical unrest in the country,” Mark Lenhard, CEO of Zepz, according to Tech Funding News. “More money will flow in because people get concerned about their families, about their communities, and that’s their time of need.”
The company is using the new funds to grow its operations beyond its stronghold in African markets, with the goal of further scaling its global footprint.
Feature Image Credit: Chris Ratcliffe / Bloomberg
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