Remitly closes in on $115m funding round

US mobile money transfer outfit Remitly says it has agreed to raise up to $115 million in a Series D funding round led by PayU, the fintech investment unit of Naspers.

The round, which is subject to third party and regulatory approvals, will also be joined by existing investors Stripes Group, DFJ, and DN Capital.

One of several fintech players challenging old-school providers such as MoneyGram and Western Union in the multi-billion dollar global remittance market, Remitly lets people in the US, UK and Canada send funds back to friends and relatives in developing countries.

Instead of relying on third-party aggregators, the firm has built a proprietary network of banks and cash pickup locations to deliver funds quickly and securely. It is used to send nearly $4 billion a year, claiming to save customers “millions” in fees.

PayU CEO Laurent le Moal, who joins the Remitly board, says: “We’re delighted to leverage our global network and local expertise, especially in markets like India, to help Remitly expand financial services through this substantial investment and we look forward to working together to develop new products and services for consumers.”