Top US investment firm, IVP are in talks to invest a multi-million pound stake in British digital payments start-up firm, Transferwise.
IVP is expected to invest ($60m) £46.5m into Transferwise, with the investment expected to secure the online payments company’s ‘unicorn’ status in the UK fintech sector.
If completed, IVP’s multi-million dollar stake will help see the British company reach a valuation of nearly £1.5bn.
Transferwise customers transfer more than £1bn every month using the service. By using peer-to-peer funding, the British payments firm provides exchange rates at a more competitive rate than traditional competitors. The company claims it saves its consumers and small businesses more than £1.5m a day in foreign exchange fees.
The British unicorn is rumoured to have had talks with numerous investors, looking to add to the $117m (£90m) the company already raised in the last six years. The company’s existing funding has come from a who’s who of well-known names, with US firm Andreessen Horowitz and Sir Richard Branson among investors.
Having venture capital firm, IVP as part of the team could help the British firm grow even further to establishing the firm as a leader in London’s fintech start-ups. Holding a 10% market share in the UK, Transferwise expects to reach £77m in revenue this year alone.
IVP already backs the likes of Twitter, Netflix and Snapchat parent company Snap. INvestment from the US company would also bring confidence in one of the UK’s biggest fintech businesses during an uncertain investment time with Brexit on the horizon.
IVP’s investment would also bring confidence in one of the UK’s biggest fintech businesses during an uncertain investment time with Brexit on the horizon.
Earlier this year, Taavet Hinrikus, co-founder of Transferwise, opened up regarding fears of the impact Brexit could have on technology firms. This most recent round of investment could be seen as the firm trying to grow and stay competitive against rival European start-up hubs such as Berlin.