Remitly set phrases for its IPO on Tuesday.
The fintech firm expects to lift $284.6 million, or $332.6 million if underwriters buy extra shares. Will probably be one of many largest IPOs for a Seattle-area tech firm.
Shares are anticipated to be priced at $38 to $42 per share, valuing Remitly at round $6.5 billion on the midpoint of the worth vary. Remitly’s final valuation was $1.5 billion in July.
Based in 2011, Remitly’s cell know-how lets folks ship and obtain cash throughout borders, together with immigrants within the U.S. and U.Ok. who assist households again dwelling in nations such because the Philippines, India, El Salvador, and others. The service eliminates kinds, codes, and brokers sometimes related to the worldwide cash switch course of.
The corporate posted $202 million in income and a $9.2 million web loss within the first six months of this yr. It generated $257 million in income and a $32.5 million web loss in 2020, doubling its annual income and reducing its loss almost in half.
Jason Stoffer, a Seattle-based enterprise capitalist with Maveron identified for his “teardowns” of IPO filings, analyzed Remitly’s enterprise metrics final week. Stoffer, who determined to not make investments, stated the corporate proved him fallacious. He expects Remitly to succeed in $600 million in income subsequent yr, noting its “superior enterprise mannequin to legacy firms” equivalent to Western Union and MoneyGram.
2/ @remitly proved me fallacious and brilliantly delivered on their imaginative and prescient. Clients not want to attend in line @westernunion and pay obnoxiously excessive charges. Remitly has excessive advertising and marketing spend, however massive TAM, robust retention and elevated working leverage level to a brilliant future.
— jstoffer (@jstoffer) September 9, 2021
Remitly competes in opposition to plenty of different cross-border cash switch firms, together with Sensible (previously TransferWise), which was valued at $11 billion after going public by way of direct itemizing in July, and Zepz (beforehand WorldRemit), which raised $292 million in a Sequence E funding spherical final week.
Investor curiosity in these firms displays the expansion alternative for digital remittances. Remitly stated the marketplace for world cash transfers was estimated at $1.5 trillion in 2020. It stated its enterprise and the digital monetary companies trade as an entire has accelerated on account of the pandemic.
A brand new report from PitchBook notes that VC exits for fintech firms “exploded” in Q2, with greater than $134 billion in combination worth, greater than the previous seven years mixed.
Remitly will commerce underneath the ticker “RELY” on the Nasdaq.
Remitly CEO Matt Oppenheimer helped provide you with the thought for Remitly whereas working for Barclays Financial institution in Kenya. He based the corporate in 2011 with Josh Hug and Shivaas Gulati; the unique title for the startup was Beamit Cell.
The corporate’s largest shareholder is Prosus’ PayU with a 23.9% stake, adopted by Stripes (12.1%) and Threshold Ventures (9.4%). Seattle-area agency Trilogy Fairness Companions has a 6.2% share. Oppenheimer has a 4.8% stake, whereas Hug has 3.1%.
There are 11 different Washington state firms which have gone public this yr, each by way of conventional IPO and a SPAC deal. Sana Biotechnology had the most important so far in 2021, elevating $587.5 million.
Editor’s notice: This story was up to date with a brand new worth for complete proceeds raised from the IPO and potential valuation.