Transferwise aims to kick off a new fundraising to take its value above £1bn

Lucy White
TransferWise offers a low-cost service to send money abroad (Source: Getty)

TransferWise, the six-year-old British payment transfer startup, is aiming to kick off a new fundraising round which would see its value exceed £1bn for the first time, according to Sky News.

The business is reportedly in detailed talks with investors, including several new names, to pull in a sum which could double the $116.37m (£89.55m) it has already raised.

Since 2011, TransferWise has already completed six funding rounds ranging from Seed to Series D, with lead investors including Seedcamp, Index Ventures, IA Ventures, Valar Ventures, Andreessen Horowitz and Baillie Gifford.

Read more: An early investor in UK fintech unicorn Transferwise has reduced its stake

Big names such as Virgin's Richard Branson and PayPal founder Max Levchin have also contributed to various rounds.

Sources told Sky News that TransferWise could finalise its new funding, targeting a total of more than $100m, within weeks.

This would be another big boost for London's fintech sector, which has seen two big deals in recent weeks with the announced £7.4bn sale of Worldpay to Vantiv and Blackstone and CVC's joint $3.7bn bid for Paysafe.

Read more: Unicorn London startup Transferwise's founder Taavet Hinrikus issues stark warning over the future of fintech after Brexit

TransferWise, which pushed its advertising campaign on London's tube system earlier this year through posters of comically shocked individuals who had reportedly just seen their transfer fees, is aiming to make international payments cheaper.

Rather than sending money across borders, it takes a payment from the payer and holds it in its locally based account.

It then sends the equivalent amount to the payee from its bank account in the destination country, without incurring any cross-border fees.

Read more: Challenger bank Revolut takes on fintech startup Transferwise with free international money transfers

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