Transferwise, the international money transfer service founded by Estonian entrepreneurs, saw a 70 percent increase in revenue to £302.6 million in the last financial year. The coronavirus crisis increased business.
The audited results of Transferwise show a net profit after tax of £21.3 million for the financial year ended March 2020. The company has been profitable since 2017.
With global expansion, new products have been launched in Europe, the United States, Asia-Pacific as well as the Middle East. In the last financial year, 107,000 new business customers joined the company, depositing over £2 billion in borderless accounts.
Slightly more than half, or 52 percent, of the revenue comes from customers' money transfers in Europe. The United States market, where operations began in 2015, accounts for 26 percent of revenue. The remaining 22 percent comes from the rest of the world, including Asia-Pacific, which is the fastest growing market for Transferwise.
Last financial year, the company made international currency transfers in the amount of £42 billion. Together with domestic payments, transfers totaled £67 billion. Today, Transferwise makes cross-border payments worth more than £4 billion every month, saving customers £1 billion a year compared to equivalent banking transactions.
During the COVID-19 pandemic, the number of Transferwise customers seeking digital alternatives to banking services has increased and total transfer volume continues to grow.
Recently, with the permission of the UK Financial Conduct Authority, the company added an investment product to its product portfolio, which allows UK customers to invest the money in their borderless account. The product will be launched in the next 12 months.
Transferwise CEO and co-founder Kristo Kaarmann said that Transferwise is setting a new standard for moving money around the world and its annual report numbers support that.
"By being faster and more user-friendly than banks, we are able to offer our services at a significantly lower and more transparent price. It is important for our growth path to remain profitable. We must be able to expand while maintaining the long-term trust of our customers. The numbers show that we are on the right track and we will continue with the goal of reaching everyone around the world who needs our services," he said.
The company has 8 million customers worldwide. Almost 30 percent of international transfers are instant transfers, meaning they arrive in less than 20 seconds. The company manages 2,500 currency exchange directions and 54 different currencies. More than 2,200 people work in 14 offices around the world.
Founded in 2011 by Taavet Hinrikus and Kristo Kaarmann, the company now has over 8 million customers who make more than 4 billion pounds' worth of cross-border transactions a month, saving 1 billion pounds a year thanks to lower service fees.
By now, the company has attracted over 1 billion U.S. dollars in investments from investors such as D1 Capital Partners, Lead Edge, Lone Pine, Vitruvian, IVP, Merian Chrysalis Investment Company Ltd, Andreessen Horowitz, Sir Richard Branson, Valar Ventures and Max Levchin from PayPal.
Editor: Helen Wright