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Zepz, formerly known as WorldRemit, has raised $267 million in a new funding round led by venture capital firm Accel, with additional participation from Leapfrog, TCV, and the International Financial Corporation (IFC), which committed up to $20 million. This latest investment will drive Zepz’s expansion in key African markets and beyond, as the company seeks to solidify its position in the digital remittance space.
While Zepz has not disclosed its current valuation, the company was last valued at $5 billion in 2021, following its acquisition of cross-border payment platform Sendwave. The integration of Sendwave led to a workforce reduction of more than 25% in May 2023. Despite earlier plans for an initial public offering (IPO), investors are reportedly in no rush to take the company public.
Harry Nelis, a partner at Accel and an early investor in WorldRemit, noted that fintech investment is rebounding, particularly for well-established players like Zepz. He emphasized that the remittance sector remains highly fragmented, offering growth potential through market expansion and strategic acquisitions as more consumers transition from traditional cash-based remittances to digital platforms.
Founded in 2010 by Somali-born entrepreneur Ismail Ahmed, Zepz has become a trailblazer in the fintech space, recognized as the UK’s first Black-founded fintech unicorn. The company achieved full-year profitability in 2022, a milestone that CEO Mark Lenhard views as a foundation for future growth. Lenhard pointed out that remittance flows often increase during times of crisis, as people rely on sending money to support families and communities back home.
The new funding comes at a time when fintech companies globally are experiencing renewed investor interest. For instance, Monzo Bank recently raised funds at a $5.2 billion valuation, while Revolut’s valuation surged to $45 billion through a secondary share sale. This trend highlights the growing confidence in the fintech sector as digital solutions continue to reshape global financial services.
Zepz’s latest capital infusion positions the company to further strengthen its presence in Africa, a region where remittances play a crucial role in economic stability, while also exploring opportunities for growth in other international markets.
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