Global payments remittance processor Remitly is prepping for an initial public offering that could value it at about $5 billion, Reuters reported citing sources familiar with the matter.
The company has tapped investment banks Goldman Sachs, JPMorgan Chase and Barclays Plc for the listing that’s expected to occur in the second part of this year, the news organization reported.
Remitly declined to comment on the IPO plans to Reuters, but did say the following in a statement:
“We’re focused on creating a strong, sustainable business, serving customers, and fulfilling our vision.”
This IPO would mark a large leap in its valuation from the $1.5 billion valuation it was given its last funding round in July 2020 where it raised $85 million, Crunchbase data shows.
Remitly was founded in 2011 and is backed by investment firms including Generation Investment Management which was co-founded by Al Gore, the family office of Jeff Bezos and others, Reuters said.
Reuters reported citing World Bank data that about $548 billion worth of transactions were transferred overseas to low- and middle-income countries in 2019. The company’s competitors include the likes of Western Union Co. and MoneyGram International.
In other recent payments news, e-commerce online payment processor ReCharge raised $277 million in growth capital, reaching a post-money valuation of $2.1 billion. The round was led by venture capital firms Summit Partners, ICONIQ Growth, and Bain Capital Ventures.
Also, Bill.com has entered into a definitive agreement to acquire Divvy in a stock and cash transaction valued at about $2.5 billion, according to a press release.The acquisition will enable Bill.com’s offerings to be expanded to let businesses automatically manage accounts payable, accounts receivable and corporate spend. Bill.com will acquire Divvy for about $625 million in cash and $1.875 billion of Bill.com. common stock.