Previously recognized as WorldRemit, Zepz has successfully garnered $267 million in a funding round supported by both new and returning investors, aiming to accelerate its growth within its primary African markets and further afield. The funding round was spearheaded by Accel, with significant contributions from Leapfrog, TCV, and Coller Capital.
In addition, the International Financial Corporation, a key global development entity affiliated with the World Bank Group, has announced its intention to invest up to $20 million. This latest injection of capital follows a Series E funding round in August 2021, during which the fintech company raised $292 million.
The funds from that round were earmarked for continued investment in Zepz’s technology and platform enhancements, improving customer offerings, and facilitating expansion into new territories. The announcement of this funding came shortly after Zepz acquired Sendwave and revealed that it had transitioned from being known as WorldRemit Group to Zepz.
Breon Corcoran, the former CEO, commented on the rebranding, emphasizing the company’s decision to maintain the Sendwave and WorldRemit brands under the Zepz umbrella. Zepz, with its headquarters in London, maintains a significant presence in several countries beyond the United States, including key African nations such as South Africa, Uganda, Kenya, Rwanda, Tanzania, and Zimbabwe.
Operating under the brands WorldRemit and Sendwave, Zepz reported in 2021 that it catered to over 11 million users across 150 countries. While the current valuation remains undisclosed, the company was previously valued at $5 billion during its 2021 fundraising efforts. Furthermore, Zepz achieved EBITDA profitability in 2022.
Long-standing supporters such as Leapfrog, TCV, and Accel have continued their investment in Zepz, having also participated in the $292 million funding round, alongside new investors like Farallon Capital. Despite speculation about an initial public offering (IPO), Bloomberg reported that Zepz has put such plans on hold. Harry Nelis, a partner at Accel, conveyed that there is no immediate pressure for Zepz to enter the public market.
Mark Lenhard, the CEO of Zepz, expressed optimism about the company’s potential for further growth. In an interview, he highlighted how global crises, such as the COVID-19 pandemic, natural disasters, or geopolitical unrest, tend to increase remittances as people seek to support their families and communities during times of need.
In a move reflecting the challenging economic landscape, Zepz announced in May 2023 that it would be reducing its workforce by over 26%, resulting in 420 layoffs from an approximate total of 1,600 employees. This downsizing effort continued into November of the same year, with an additional 30% reduction in staff.
