Transferwise becomes Europe’s most valuable fintech at $3.5bn valuation

Money transfer service Transferwise today announced the completion of a $292m (£230m) share sale, making it Europe’s most valuable fintech company at $3.5bn.

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Existing investors Andreessen Horowitz and Baillie Gifford expanded their holdings in Transferwise, while investment was also provided from funds managed by Black Rock.

The funding round was led by growth capital investors Lead Edge Capital, Lone Pine Capital and Vitruvian Partners, Transferwise said.

To date, the company has raised $689m in primary and secondary funding as it resists going public.

Transferwise, founded by Estonians Taavet Hinrikus and Kristo Kaarmann in 2011, now serves 5m customers worldwide, processing £4bn every month.

It has become a popular method for sending money across borders cheaply and quickly.

Transferwise has long campaigned to end the traditional practice of hiding fees in a rate mark-up.

In 2018, the EU voted to mandate the Transferwise model, outlawing exchange rate mark-ups on international payments, while Australia is considering similar regulatory measures.

Kristo Kaarmann, chief executive and co-founder, said: “Transferwise is experiencing phenomenal growth and this investment is testament to that. We don’t need to raise funds to continue on this trajectory, but we’re humbled by the persistent level of interest in joining our mission.”

“The round provides a way for these investors to buy in, alongside rewarding some of the earliest contributors who’ve been with us since the beginning,” he said.

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Nimay Mehta, general partner at Lead Edge Capital, said: “The world is moving towards a more transparent way of doing business and we want to be part of that.”