London start-up TransferWise has secured £58 million in its latest funding round.
The money has been raised via a range of sources with current investors – including Richard Branson and Seedcamp – joined by new parties such as Netscape-backed VC firm Andreessen Horowitz.
TransferWise is one of Europe’s most successful tech start-ups. The product was developed by some of the same teams responsible for Skype and PayPal and claims to remove banking fees hidden within money transfers. So far £3 billion has been transferred using the platform.
The funds raised will go towards implementing the business’s global expansion programme – with offices due to open in the US, Germany and Australia in 2015. Since its launch in 2011 the business has grown rapidly and now employs 250 people.
Two regional managers have so far been appointed to lead the international expansion, the company has also announced. Joe Cross will head up the US arm, while Moritz Kork will spearhead operations in Germany.
The latest funding round was led by Andreessen Horowitz, with co-founder Ben Horowitz joining the board at TransferWise. He put the company’s success down to founders Taavet Hinrikus and Kristo Käärmann “discovering an important secret and being uniquely prepared to pursue it.”
“Since there has been little to no innovation from the traditional banking sector, we see massive opportunity for new financial institutions like TransferWise,” he said.
In turn Hinrikus said that the interest of Horowitz shows “how ripe financial services are for disruption”.
“We’re excited to have Ben join our board. His experience will help us take our revolution in financial services across the globe, starting with the US offices we’re launching,” he continued.