Seattle startup Remitly, which allows people to send money abroad, announced Tuesday it would expand to Canada with an eye to even more growth.
Remitly, a Seattle startup that helps immigrants send money home, has raised a $38.5 million funding round and announced it will expand to Canada.
Including a $12.5 million round in March 2015, the company has now raised $61 million.
The lead investor in the latest round was New York-based venture-capital firm Stripes Group. Remitly also raised money from Paul Allen’s Vulcan Capital and existing investors DFJ, DN Capital, Bezos Expeditions and Trilogy Equity Partners.
The 5-year-old startup runs a mobile service that sends money overseas with the goal of making remittances easier and cheaper than with entrenched leaders such as Western Union. Remitly enables customers to send money from the U.S. to India, Mexico and the Philippines, and now will let people send money from Canada to India and the Philippines.
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Canadian residents transfer more than $23 billion annually, including a combined $5 billion to India and the Philippines, Remitly said.
“Our strategy is to continue to focus on big markets,” said CEO Matt Oppenheimer.
The company plans to use its latest funding to expand globally, said Oppenheimer, who started the company after seeing firsthand in Kenya how difficult it was to send money abroad.
It also plans to grow its team, which now has 100 people total in the U.S. and the Philippines, including 70 in Seattle.
Oppenheimer said the current tech-investing market, which has been under a cloud of uncertainty for several months, was friendly to the company.
“We have a solid business and are growing rapidly,” he said. “For companies that fit that criteria, you can raise money.”
Remitly said its customers are sending more than $1 billion a year using the technology, which enables messaging and touch ID in an increasingly mobile world. Remitly partners directly with banks and other pickup spots in each country and lets users send money from a debit card or bank account.
Stripes Group partner Ron Shah will join the company’s board of directors, Remitly said Tuesday.