Zepz Successfully Obtains $165M for Enhancement of International Money Transfer Services
Zepz Secures $165 Million in Financing to Accelerate Digital Remittance Expansion
Zepz, the parent company of WorldRemit and Sendwave, has secured $165 million in new financing, a move that strategically positions the company to significantly accelerate its expansion in digital remittances.
The financing round, led by the International Finance Corporation and AEON Financial Service, is a significant boost for Zepz. The funds will be used to fuel the company's growth, enabling faster transactions, optimizing transfer fees, and expanding its global footprint in digital remittances.
Barrie Morris, CFO at Zepz, mentioned that the facility lowers borrowing costs and improves their financial flexibility. Mark Lenhard, CEO at Zepz, stated that the expanded facility strengthens their ability to invest in better pricing and ongoing innovation.
The infusion of capital from prominent backers such as HSBC, through this growth financing deal, underscores confidence in Zepz’s business model and its role in driving financial inclusion, particularly in underserved markets. This financial boost will likely support Zepz in investing in product innovation, market penetration, compliance, and partnerships, strengthening its competitive edge in the cross-border remittance market.
The financing deal includes a $110 million revolving credit facility led by HSBC Innovation Banking. A $55 million term facility is part of the deal, underwritten by HSBC Private Credit. Angela Mylrea, Head of Corporate Credit Solutions at HSBC Innovation Banking UK, expressed delight at deepening their partnership with Zepz.
The new financing replaces a previous $80 million arrangement. The financing strengthens a decade-long partnership between Zepz and HSBC. This facility underscores HSBC's commitment to supporting high-growth fintech companies.
Zepz powers WorldRemit and Sendwave, serving over 9 million users. The platforms process more than 8 million transactions monthly. With this new financing, Zepz is poised to expand its digital remittance services to a broader global audience, enhancing financial inclusion on a massive scale.
[1] Source: Company press release
Zepz has also stated that this influx of capital will enable them to make further investments in their business, specifically in product innovation and ongoing innovation, reinforcing their position in the investing world. As the company continues to grow and optimize its digital remittance services, this financing round is expected to bolster its ability to establish new business relationships and penetrate more markets outside the current user base, thereby fostering financial inclusion on an even larger scale.
