Monday 6 July 2020 2:44 pm

Transferwise to hit $5bn valuation in secondary share sale

British fintech stalwart Transferwise is to secure a $5bn valuation on the close of a secondary share sale this week, cementing its place in the sector’s upper echelon of tech companies.

Transferwise is close to finalising the $300m sale, which will allow staff and early investors to offload part of their stakes, people close to the firm told Sky News.

The cross-border payments business was last valued at $3.5bn when it held a secondary share sale last year, representing a 30 per cent growth in its valuation.

It now employs over 2,200 people across 14 global offices, processing around £4bn in cross-border transactions every month.

The share sale will put Transferwise firmly in the upper ranks of Britain’s fintech pack alongside the likes of Revolut, with few others having attained a $5bn valuation to date.

Transferwise said last week it has been granted multiple new licences by the Financial Conduct Authority to carry out investment activities, which means it will soon allow users to earn interest on funds in its Borderless banking account.

Read more: Transferwise gets FCA authorisation for interest-earning accounts

Transferwise’s two co-founders Taavet Hinrikus and Kristo Kaarmann are thought to own approximately 40 per cent of the scaleup’s shares between them, Sky News reported.

The firm’s existing investors include top Silicon Valley venture capital firms Index Ventures, Andreessen Horowitz and IVP, as well as figures such as Virgin billionaire Sir Richard Branson.

Transferwise holds more than £2bn in customer deposits worldwide, and has issued approximately 1m debit cards.

A Transferwise spokesperson declined to comment.

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