Remitly, a Seattle startup, reveals its financial results Preparation for the upcoming IPO

Left to right: Remitly co-founders Josh Hug, Matt Oppenheimer and Shivash Gulati. (Remitly Photo)

Seattle-based money remittance company Remitly disclosed key financial results on Monday afternoon in its Form S-1 registration statement, a key milestone toward becoming a publicly traded company.

Remitly had a revenue of $257 million and a loss of $32.5 million in 2020. This equates to nearly doubling its annual revenue.

Since then the trends have been consistent with $202 million of revenue for the company and a $9.2million net loss during the first six months.

Remitly first signaled its IPO plans in June and is going public the old-fashioned way, offering an initial public offering of its shares. There have been many other public companies in the last year that went public through mergers of special purpose acquisition corporations, also known as SPACs.

Remitly’s last valuation was $1.5 billion in July when it raised an $85 million investment round. This is one of only a few tech companies in Seattle that has been valued over $1 billion.

Remitly was founded in 2011 and its mobile technology allows people to send and receive money over borders. This includes immigrants from the U.S. or the U.K., who are supporting their families in El Salvador, India and the Philippines. This service removes the need for forms, codes and agents as well as other fees that are associated with international money transfers.

Remitly is ranked No. 10 among the top 10 most-downloaded peer-to-peer payment apps worldwide, according to eMarketer.

Remitly is competing against several other cross-border money transfer businesses, such as Wise, formerly TransferWise, which has been valued at $11 Billion after it went public in July via direct listing, and Zepz, formerly WorldRemit, which received $292 M in Series E funding last Wednesday.

These companies are attracting investors because of the potential for growth in digital remittances. Remitly stated that the global market for money transfers was $1.5 trillion in 2013, growing at 4% per year. The pandemic has led to an acceleration in the growth of both its business as well as the entire digital financial services sector.

Remitly CEO Matt Oppenheimer helped come up with the idea for Remitly while working for Barclays Bank in Kenya. The company was founded by Josh Hug and Shivaas Gurlati in 2011.

With a 23.9% share, Prosus’PayU is the largest shareholder. Next are Stripes (12.1%), and Threshold Ventures (9.4%). Trilogy Equity Partners, a Seattle firm has 6.2%. Hug holds 3.1%, Oppenheimer owns 4.8%. Hug also has 4.8%.

Remitly, No. 3 on the GeekWire 200 list of top Pacific Northwest tech startups, has around 1,600 employees across its Seattle HQ and six other offices in Spokane, Wash., London, Cork, Krakow, Manila, and Managua.

The company earlier this month inked a deal with Los Angeles Football Club, becoming the MLS team’s exclusive global money transfer partner.

Eliem Therapeutics, Absci; Icosavax, Sana Biotechnology and Impel Neuropharma are other Washington companies that will go public in the coming year. SPAC transactions were used to make Rover and Nautilus Biotechnology public.

Todd Bishop, a GeekWire reporter, contributed to this article. __S.27__

Publiated at Mon, 30 August 2021 22.04:49 +0000

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