Remitly Global Inc., a mobile finance startup that makes it possible to send money from the U.S. to foreign countries, has filed paperwork to go public, with a goal of raising up to $294 million.
The Seattle-based startup plans to sell 7 million shares of common stock with a maximum offering price of $42 per share, which would raise $294 million for the company, according to paperwork filed Tuesday with the Securities and Exchange Commission.
Also, the company’s board of directors and senior management plan to sell an additional 5,162,777 shares of common stock, which could raise $216.8 million. Those proceeds would not go to the company.
The company’s stock would be listed on the Nasdaq Global Select Market under the symbol “RELY.”
Remitly has seen rapid growth in revenue and customers, most of whom send money from the U.S., Canada, U.K, Australia and Europe to more than 115 other countries. The largest recipients are in India, the Philippines and Mexico.
In an interview with The Seattle Times in August 2020, Nick Moiseff, a Remitly vice president, described the company’s client base as “overwhelmingly immigrant,” including “a lot of tech workers — Amazon, Microsoft, etc. — that are relatively new to the country and are supporting family, or paying off loans and things back home. So, they’re using Remitly to send that money back home, either for their loved ones or their own personal reasons.”
Overall, the company said it had about 2.4 million active customers in the three-month period that ended June 30 and said its customer base grew 57% from June 2020.
Remitly said it collected $202 million in revenue for the first six months of 2021, a 92% jump in revenue the company reported during the first six months of 2020. The company reported a net loss of $9.2 million for the first half of 2021, down from a net loss of $21.1 million during the same period in 2020.
Remitly generates revenue from transaction fees and the difference between the company’s foreign exchange rate on currency purchases and the rate Remitly charges customers.
Remitly has raised more than $500 million in funding, according to Crunchbase. Investors included Naspers’ PayU, Silicon Valley Bank, Stripes Group, DN Capital, QED Investors, Trilogy Equity Partners and Bezos Expeditions, which manages Amazon founder Jeff Bezos’ venture capital investments.
The company said it had more than 1,600 employees as of June 30, mostly in Seattle. The company leases about 38,000 square feet of office space in downtown Seattle.