Zepz Secures $267 Million in Funding to Fuel Expansion in Africa and Beyond
Zepz, formerly known as WorldRemit, has raised $267 million in a funding round led by venture capital firm Accel, with participation from Leapfrog, TCV, and the International Financial Corporation (IFC), which pledged up to $20 million. The funding will support Zepz’s expansion in its core African markets and other regions.
While Zepz declined to disclose its current valuation, the company was last valued at $5 billion in 2021 after acquiring cross-border payment platform Sendwave. Following the integration, Zepz reduced its workforce by over 25% in May 2023. Although an initial public offering was previously planned, investors are reportedly in no hurry for the company to enter public markets.
Harry Nelis, partner at Accel and an early backer of WorldRemit, highlighted that fintech funding is making a comeback, especially for established companies like Zepz. He pointed out that the remittance industry remains fragmented, presenting growth opportunities through expansion and acquisitions as more customers move from cash-based to digital transfers.
Founded in 2010 by Somali-born entrepreneur Ismail Ahmed, Zepz made history as the UK’s first Black-founded fintech unicorn. The company reached full-year profitability in 2022, and its CEO, Mark Lenhard, sees more room for growth, noting that remittances often increase during crises when people seek to support their families and communities.
The new funding comes as fintech companies worldwide are seeing a resurgence in investment. Similar moves include Monzo Bank raising funds at a $5.2 billion valuation, while Revolut’s valuation climbed to $45 billion through a secondary share sale.
