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TransferGo raises $10 million to expand remittance business in Asia, doubling valuation

TransferGo, a UK-based fintech company known for its global consumer platform for remittances, has raised $10 million in growth funding from Taiwanese investor Taiwania Capital as it looks to expand in the Asia-Pacific region. It last raised $50 million in Series C funding in 2021.

TransferGo claimed that the new investment doubled Dealroom’s valuation of $200 million to $300 million in September 2021 to around $600 million.

TransferGo co-founder and CEO Daumantas Dvilinskas told TechCrunch: “We have been profitable last year and the only expense was marketing, but it was very limited. We achieved the sustainability of the business. Sustainability and profitability, and we still have the proceeds from the last round of financing. So we are profitable. We don’t need outside capital to grow.”

However, he saw an opportunity to raise capital from Asia to expand there. “We’re raising money because we want to expand faster in Asia Pacific. So that’s our next frontier,” he said. “We’re still getting customers from existing businesses: 75% from cash, bank and Western Union – that’s still the gorilla in the room.”

He attributes TransferGo’s growth to its focus on consumer experience. “We’ve probably been the most consumer-focused company in the space,” he said. “This is evident in our trusted reviews – still better than other reviews. We truly build the product for the consumer. 90% instant checkout, instant 24/7, and consumers love it. It’s not easy to do.” It takes time. You have to solve existing technical problems.”

Still, things haven’t been smooth sailing. Last year, TransferGo was fined €310,000 by the Bank of Lithuania for AML (anti-money laundering) lapses.

“We’ve been doing inspections and they found some procedural loopholes that we closed before the end of the year,” Dwilinskas told me. “Regulation is getting tighter but we’re delighted we’ve closed the door because of the feedback we received from them following the conclusion of mediation on their success.”

TransferGo competes primarily with market leader Western Union, but upstarts such as Remitly and Wise also compete.

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