ImpactAlpha, July 12 – Seattle-based Remitly was an early mover in disrupting the fragmented and fee-laden international money transfer market when it launched 10 years ago. The company’s mission is to make it easier and cheaper for immigrants to send money home. It has since set up 700 money transfer “corridors” worldwide, allowing people to send money online or by mobile phone at no cost or lower cost to other services, according to TechCrunch.
The company’s latest debt and equity funding round brought in $220 million—and with it a valuation close to $1 billion. Al Gore’s investment company Generation Investment Management led the round. Until now, Remitly hasn’t attracted much impact investment. But Remitly’s Matt Oppenheimer is outspoken about the company’s impact mission and focus on “remittance flows from developed countries to emerging nations.”
“Our goal is to return the billions of dollars in service fees that have been taken from immigrant workers and pocketed by antiquated remittance companies,” Matt Oppenheimer said in an interview last year.
Oppenheimer hinted that the company may soon launch a new credit service. “The idea is to transform the lives of immigrants and their families,” he told TechCrunch. “It can have a painful impact not having a credit history.”