Another Iidoor flying high controlling $500 million dollar company

[Maroodijex]

WorldRemit Gets $45M At A $500M Valuation To Grow Its Mobile Money Transfer Business

Today, mobile money transfers account for about 25% of all of World Remit’s business (the remaining 75% goes to a variety of other endpoints including traditional banks, cash pick up, mobile airtime top-ups, and even door-to-door delivery where the funds are delivered to someone’s home).

But mobile money is where a lot of the opportunity lies: mobile phones are already being used as the primary medium for long-distance communications with family and friends, and so it becomes a natural platform for sending them money, too.

WorldRemit made $39 million in revenues in 2015. In dollar terms, that represented growth of 56% versus 2014, short of the bullish projections it made in 2015 after pulling $24 million in revenue in 2014 (it made $9.3 million in 2013, growing 168% in 2014). (Update: WorldRemit notes that it’s a Sterling company, based in the UK, so 2014 turnover was £15.2m in 2014 and £27m in 2015. In that currency, WorldRemit actually grew 80% last year, as the pound has just weakened against the dollar.) There is also the issue of wider economic forces, for example the economic downturn, which had an impact on the remittance market, according to the World Bank.

WorldRemit currently averages around 400,000 transfers each month, and it claims that its mobile money market share is the largest of any money transfer service today.

But interestingly, as WorldRemit continues to build out its business in mobile, it may be processing a lot more transactions, but the value of them has been in decline.

“If you look at the number of transactions going to mobile money, they are increasingly getting smaller,” Ahmed says. “Today our average per transaction is around £90, but historically it was £150. The reason why is that with messaging apps, people are communicating with family members more frequently, and so they are sending smaller amounts more frequently.” (This is also one reason why Facebook has explored ways of tying its own Messenger app more closely with remittance services.)

Competition in the market has also led to remittance companies slashing their fees: it was not that long ago that a typical transfer fee was £10 or more, Ahmed says, forcing migrants to send larger amounts in one go. That has been slashed to fees that can be under £1, alleviating the pressure to send quite as much.
That raises another potential pressure for WorldRemit: it’s operating in a crowded market. Apart from incumbents like Western Union and MoneyGram, there are a number of others that are building businesses in the remittance market. They include the likes of Xoom (acquired by PayPal last year for $890 million), Azimo, Regalii, Remitly and TransferWise.

“I think there are a number of companies in the money transfer but when you are looking specifically at companies targeting emerging markets like we are, there are really only a handful of bigger players, and I think we are the most global,” Ahmed says.

This reach and purpose of targeting underserved areas is what has helped WorldRemit stand out with investors, too.

“It is exciting to be involved with a service that delivers real benefits to people around the world while demonstrating impressive business growth,” said Sajal Srivastava, President of TriplePoint Venture Growth BDC Corp., in a statement. “WorldRemit represents what the FinTech revolution has to offer: innovation, empowerment to individuals and new opportunities to the financial services industry.”

“Operating across the world gives WorldRemit diversified revenue streams and a huge customer base,” said Phil Cox, Head of EMEA and President of UK Branch, at Silicon Valley Bank. “This is a great story of tech for good – the social impact of connecting remittances to Mobile Money services in the developing world has been huge and looks set to continue.”

Updated with more detail on revenue growth and currency clarifications.

[AwRastaale]

Within the next 3-5 years WorldRemit will surpass the $1bln evaualtion at the current growth rate.

Its investors are big global players and its customers are very diverse. It is well penetrated system.

I believe he will be the first clear Somali billionaire.

He needs to focus more on South America because he has great presence in Asia, Africa, Europe and he entered North America this year.

I haven't heard much buzz from South America. He needs target those Latinos.

If it's mobile transfer averages £90 per month with 400,000 transactions then that's £432 million worth transactions per year.

[hangool79]

Finally a Somali company that focuses on Non-Somalis as well

If only the rest would learn

Even Dahabshiil is to fond of somali oriented business.

[theyuusuf143]

Congratulations to them. This company changed my own life. Cheap rates, fast and reliable services. You can even send money to your own self right from your handset when you are traveling around the world. All you need is internet.

[Siciid85]

Masha Allah congrats to the brother

[MujahidAishah]

Congratulations to them. This company changed my own life. Cheap rates, fast and reliable services. You can even send money to your own self right from your handset when you are traveling around the world. All you need is internet.

Thanks walal I am going to set up an account to send myself number this summer

what mobile company do you need telsom mise somtel

[theyuusuf143]

Congratulations to them. This company changed my own life. Cheap rates, fast and reliable services. You can even send money to your own self right from your handset when you are traveling around the world. All you need is internet.

Thanks walal I am going to set up an account to send myself number this summer

what mobile company do you need telsom mise somtel

In somaliland you need to have Zaad. In ethiopia you can collect your money from the local Ethiopian commercial bank. Same goes to Djibouti you can collect your money from the bank.

[MayDay777]

Allah haubarakeyo