The Observer - 16 March 2014 - 13
WorldRemit backed with $40m investment
W
Business Reporter
orldRemit,
an
online
platform which enables
Zimbabweans and expats to
send quick, convenient and
low-cost remittance payments to families and
friends abroad, has has closed a $40 million
investment from Accel Partners, a Silicon
Valley investor in the likes of Facebook and
Spotify, in a deal that represents one of the
largest venture capital funding rounds to be
completed in Europe.
Accel’s
investment
will
support
WorldRemit’s expansion into new geographies
and the development of additional products
and services.
The online platform, which enables the
sending of as little as US$1 for low fees, has
already proven popular with Zimbabwean
expats and migrants around the world.
Currently, 33 percent of WorldRemit’s
transactions to Zimbabwe are going to mobile
accounts, EcoCash being the most popular.
Said Ismail Ahmed, Founder & CEO at
World Remit: “WorldRemit offers migrant
workers and expats unparalleled speed,
convenience and transparency when sending
money home.
“We expect the online money transfer
sector to account for approximately 30% of
the remittance market in the next few years
and that WorldRemit will be at the forefront
Key investment ... The WorldRemit management team
of this change.
“We offer the most extensive range of payout options unmatched by any money transfer
firm, including payments to mobile wallets
and international airtime top up, which enable
recipients to receive their money even where
there is limited or no banking infrastructure.
“This faster, more flexible model is already
the first choice for tens of thousands of
Zimbabwean migrants sending money home
to relatives and friends.”
He added: “Accel Partners with their
global network and extensive expertise in
the payments industry is the perfect fit for
WorldRemit. We are excited to continue our
rapid growth trajectory with their support.”
Harry Nelis of Accel Partners commented:
“WorldRemit is moving remittance online,
disrupting a traditionally offline business and
democratizing payments.
“We are excited to be partnering with a
team with the deep industry expertise that has
enabled them to build the robust technology
and strong compliance needed for a secure,
trusted and world-class remittance business.”
According to The World Bank, $519 billion
of remittance payments were made in 2012 of
which $2.1 billion are estimated to have been
made to Zimbabwe. Most remittances were
handled via traditional players such as Western
Union and MoneyGram, as well as a plethora
of smaller and informal operators.
The majority of these payments are still
Losses in blue chips
weaken rudderless ZSE
Z
HARARE
imbabwe’s rudderless equities
market closed weaker on
Friday, with the industrial index
dropping 0.35 points to close
at 186.22 points due to losses in selected
heavyweight counters.
Financial releases this week failed to
spark the market with turnover at a low
$522,626.
Banking group, ABC pared off three
cents to 47 cents in negligible trades valued
at $336, for a year to date loss of 20
percent. Innscor dropped 0.90 cents to 72
cents in low volumes while Seed Co shed
0.10cents to trade at 89.90 cents.
TSL’s assertion at its annual general
meeting on Wednesday that its 2014 looks
rosy failed to excite the market, shedding
0.20 cents to settle at 37 cents.
Turnall traded 20 percent, or one cent
weaker to close at four cents, Dairibord
dropped 0.25 cents to 13 cents and First
Mutual was 0.20 cents softer at 10.50 cents.
The losses were capped by gains in
insurance giant, Old Mutual, which added
2.51 cents to 250.01 cents while Afdis traded
0.50 cents higher to 33 cents. Other positive
trades were in Truworths and Zimre which
pushed up 0.10 cents each to trade at four
cents and 1.10 cents respectively.
On a weekly basis, the industrial index
dropped 2.71 points.
The mining index was flat at 33.16 at
points but lost 1.20 points on a weekly
basis. - The Source
conducted via a network of physical locations,
resulting in an inefficient and expensive user
experience. These traditional operators also
create compliance risks associated with
acceptance of cash at corner shops that leaves
no audit trail.
However, WorldRemit with its onlineonly, cashless business model offers a
more efficient, affordable and transparent
remittance alternative to traditional money
transfer operators. Customers can send funds
from 35 countries to families and friends in
over 100 destinations.
Senders can use WorldRemit’s online
platform, also accessible via mobile phones
and tablets, to make payments by debit or
credit card, or via bank transfer. Recipients can
receive funds via bank deposit, direct transfer
to mobile wallets, cash pickup or delivery, as
well as airtime top-up for their mobile phones.
Founded in 2009, WorldRemit has
partnered with leading international banks,
mobile operator hubs and mobile money
transfer networks including EcoCash and
M-PESA, as well as an array of fast, low-cost
local money transfer networks.
The company currently enables more than
1.3 million annualised remittance transactions
with the help of over 50 employees and
expects to continue its rapid growth in 2014,
expanding its staff to 200 employees by the
end of the year.■
Reconstructing Zimbabwe
• Continued from Page 7
The state in Zimbabwe is too much focused on
security and political power over other interests
like the economy. How does one account for the
missing black rhinos, for the slaughtered lions and
elephants?
How does one acc