Bengaluru, NFAPost: Global cross-border digital payments company WorldRemit announced it has agreed to acquire Sendwave, a rapidly growing app-based remittance company in a cash and stock transaction that is expected to close, subject to licensing and regulatory approvals, in Q4 2020.
Founded in 2014, Sendwave has built a leading and rapidly growing digital remittance service to East and West Africa, and this summer added Bangladesh, its first receiving market in Asia. Sendwave will continue to operate independently and retain its mobile applications, brand, management, employees and key partners.
Commenting on the acquisition, WorldRemit CEO Breon Corcoran said both WorldRemit and Sendwave share a common purpose and that is allowing customers to easily and cost-effectively send financial support to families, friends and businesses in other countries.
“WorldRemit has one of the broadest and most accessible networks for money transfers globally. Combining it with Sendwave, which offers instant, no/low-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal and East Africa, addresses customer needs for fast and secure digital payments – especially given today’s travel restrictions and economic turmoil,” said Commenting on the acquisition, WorldRemit CEO Breon Corcoran.
Sendwave CEO Will Fogel said users send money so their loved ones can pay for necessities like utilities, healthcare and school fees.
“‘Sendwave’-ing money is as easy as sending a text – one less worry for the hard-working and generous diaspora communities that we serve. We’re eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria. Together, we can achieve a better service for current and future users,” said Sendwave CEO Will Fogel.
In the last 12 months, ending 30 June 2020, WorldRemit and Sendwave have sent approximately $7.5 billion in transfers, generating approximately $280 million in revenue. This represents a YoY growth of over 50% for the year ended June 2020 relative to historic combined revenues.
On a pro forma basis, the combined company will have over 100 send licences including for every US state, across a network that includes 50+/150+ send/receive countries and almost 8,000 payments corridors, a broad footprint that serves a large, but fragmented $715 billion remittances market that the World Bank estimates is growing at a 10% annual CAGR.
WorldRemit was founded in 2010, and serves over 4 million customers. Through our digital services customers can send 90 currencies to 150 countries, across almost 8 thousand corridors.
Recipients benefit from one of the widest ranges of money-out options including bank deposit, mobile money, and cash pickup. Our investors include Accel, TCV and Leapfrog. Accel and TCV are long-term investors in well-known brands including AirBnB, Facebook, Spotify and Expedia.
Sendwave was founded by Drew Durbin and Lincoln Quirk with the mission of making sending money cross-borders as easy as sending a text. Upon consummation of the transaction, Sendwave’s founders will continue working on projects that bring access to financial services in Africa, on an independent basis.