Formerly known as WorldRemit, Zepz has raised $267 million in a new funding round aimed at accelerating its growth in key African markets and expanding its global footprint. This round of financing was led by Accel, with significant contributions from Leapfrog, TCV, and Coller Capital.
In a parallel move, the International Financial Corporation (IFC), an arm of the World Bank Group, has also committed to invest up to $20 million in Zepz. This influx of capital follows a Series E funding round in August 2021, where the fintech firm raised $292 million.
Strengthening Technology and Expanding Territories
The $292 million raised in 2021 was directed towards enhancing Zepz’s technology platform, improving customer offerings, and expanding into new regions. This expansion came on the heels of Zepz’s acquisition of Sendwave, and the subsequent rebranding from WorldRemit Group to Zepz.
Former CEO Breon Corcoran emphasized that, despite the rebranding, the company continues to operate under its well-known brands, WorldRemit and Sendwave, which have strong recognition across its target markets. Zepz is headquartered in London but maintains a significant presence in multiple countries, including key African markets such as South Africa, Uganda, Kenya, Rwanda, Tanzania, and Zimbabwe.
Global Reach and Financial Strength
Operating under the dual brands of WorldRemit and Sendwave, Zepz reported in 2021 that it served over 11 million customers across 150 countries. While the company’s current valuation remains undisclosed, it was valued at $5 billion during the 2021 fundraising round. In 2022, Zepz achieved EBITDA profitability, demonstrating its financial resilience.
Long-standing investors, including Leapfrog, TCV, and Accel, have once again backed the fintech company, reaffirming their confidence in its growth trajectory. Farallon Capital also joined the latest funding round as a new investor. Despite ongoing speculation about an initial public offering (IPO), Zepz has no immediate plans to go public. Accel partner Harry Nelis confirmed there is no pressure for the company to enter the public markets at this time.
Remittance Growth Amid Global Crises
Mark Lenhard, CEO of Zepz, shared his optimism about the company’s future growth potential, particularly in light of global crises. Lenhard highlighted that during events such as the COVID-19 pandemic, natural disasters, or geopolitical unrest, remittance volumes typically increase as people send more money home to support their families and communities in times of need.
Workforce Reductions Reflect Challenging Economic Environment
In May 2023, Zepz made headlines with a decision to reduce its workforce by over 26%, resulting in 420 layoffs from a total of approximately 1,600 employees. This downsizing continued later in the year, with an additional 30% reduction in staff in November. These moves reflect the broader challenges the company faces in navigating the current economic climate, despite its strong financial performance and growth prospects.
Looking Ahead
Zepz is poised to continue its expansion in both African markets and beyond, with significant capital backing from established investors. The company’s dual-brand strategy, along with its focus on technology and inclusivity, places it in a strong position to thrive in the global remittance landscape.
Source: Innovation Village