TransferGo, the well-known UK fintech company in the world of global remittances, has just received a major boost towards expanding in the Asia-Pacific region with a $10 million growth funding round from Taiwan-based investor Taiwania Capital. This comes on the heels of a successful Series C funding round in 2021 which raised $50 million for the company.
TransferGo’s latest investment has led to a doubling of its valuation to a staggering $600 million. This is a significant jump from the $200 million to $300 million valuation by Dealroom just a year ago in September 2021.
Daumantas Dvilinskas, the co-founder and CEO of TransferGo, spoke to TechCrunch about the company’s financial status and goals. He proudly stated, “We have managed to consistently be profitable for the past year and have not faced any major setbacks. Our only major expense is in marketing, but even then it has been within reasonable limits. Our business is sustainable and we have enough resources from our previous funding round to keep us going. So, we are not in dire need of external capital for growth.”
However, Dvilinskas saw the potential for expansion in Asia and this led to the decision to raise funds from the region. “The main reason for this funding round is to accelerate our growth in the Asia Pacific. We still have a stronghold on the market, with 75% of our customers coming from traditional institutions like cash, banks, and Western Union, which still remain the dominant players in this industry,” he explained.
He attributed TransferGo’s success to their unwavering focus on providing the best consumer experience. “We have always prioritized the consumer and their experience, making us the most consumer-centric company in this space. Our trusted reviews speak for themselves, still surpassing others in the industry. We continuously improve our product for our customers and the instant settlement option, available 24/7, is a big hit with them. However, it wasn’t easy to implement and took a lot of effort to overcome technological glitches,” he added.
But it hasn’t been a smooth journey for TransferGo. Last year, the company faced a €310,000 fine for violating AML regulations from the Bank of Lithuania. Dvilinskas acknowledged the issue and stated, “We underwent an inspection and it was identified that there were some procedural gaps. However, we addressed these issues and resolved them before the end of the year. While regulations are becoming stricter, we are glad to have rectified any errors and received positive feedback from the bank.”
TransferGo’s biggest competitor in the market is the mighty Western Union, but they also face competition from emerging players like Remitly and Wise. With this recent funding round and a strong foothold in the market, it looks like TransferGo is well-equipped to take on the competition and continue its impressive growth journey.
