Fintech/News/ TransferWise hits $5bn valuation after secondary share sale The new valuation is up from $3.5bn last year. By Michael Stothard 29 July 2020 \Fintech 'The time is now': Monzo searches for US CEO to double down on expansion By Amy O'Brien 9 February 2023 Fintech/News/ TransferWise hits $5bn valuation after secondary share sale The new valuation is up from $3.5bn last year. By Michael Stothard 29 July 2020 London-based payments startup TransferWise is now valued at $5bn following a secondary share sale in a further sign of the increased excitement about online payments startups amid the coronavirus pandemic. The fintech on Wednesday said that it had completed a $319m secondary share sale led by new investor D1 Capital Partners and existing shareholder Lone Pine Capital. Existing shareholders Baillie Gifford, Fidelity International and LocalGlobe all increased their holdings in the company. Shares were sold by employees and some existing shareholders. The $5bn valuation for the profitable fintech is a big jump from the $3.5bn valuation TransferWise achieved last year. But is it still not quite as valuable as Revolut, Checkout.com and Klarna which are all valued at $5.5bn. “We’ve been funded exclusively by our customers for the last few years and we didn’t need to raise external funding for the company,” said cofounder and current CEO Kristo Käärmann in a statement. “This secondary round provides an opportunity for new investors to come in, alongside rewarding the investors and employees who’ve helped us succeed so far”. Founded in 2011, TransferWise has been hugely successful undercutting the fees charged by the big banks to send money abroad. TransferWise charges less than 1% on many currency transfers, compared to what the World Bank estimates is an industry average of more than 7%. There are now more than 8m people using TransferWise, moving over £4bn a month. It’s not the first time existing investors have sold shares — the company was valued at $3.5bn last year as part of a $292m secondary round. At the time, Sifted reported that there were more than 150 employees who were paper millionaires at the company. Related Articles The startups killing Italy’s cash economy By Ben Munster in Rome Click here to read more The key to a successful listing, from a founder who’s done it Sponsored by Euronext Click here to read more Europe’s 16 most underrated fintechs, according to VCs By Isabel Woodford Click here to read more TransferWise becomes Wise By Freya Pratty and Amy Lewin Click here to read more Most Read 1 \Healthtech Is Daniel Ek’s new body scanner worth the hype? Sifted tried it out 2 \Venture Capital VC diversity needs to change — and white men need to take responsibility 3 \Venture Capital New €3.75bn European Investment Fund pot to back late-stage VCs 4 \Sustainability Counteract closes £15m fund for carbon removal solutions 5 \Mobility Was the $5bn that VCs plugged into escooters worth it?