Global technology company TransferWise announces its annual revenue increased by 70% in the last financial year to £302.6 million. Its audited results show a net profit after tax of £21.3 million for the fiscal year ending March 2020, with the business consistently reporting a profit since 2017.
During the Covid-19 pandemic, TransferWise has seen an uplift in new customers seeking digital alternatives, with overall transfer volumes continuing to grow.
In the financial year, customers sending money from Europe contributed 52% of TransferWise’s overall revenue. The US business launched in 2015 and now contributes 26% of revenue. The remaining 22% is attributed to the rest of the world including APAC, TransferWise’s fastest-growing region.
TransferWise processed a total of £42 billion in cross-currency transfers, with a total volume of £67 billion including domestic payments across the financial year. Today, the company sends over £4 billion in cross-border payments every month, saving people £1 billion a year compared to making the same transaction with a bank.
“TransferWise is about building a new way to move money in the world, the numbers on the balance sheet are there to support that,” said Kristo Käärmann, CEO and co-founder of TransferWise. “We’re building a way that’s faster and more convenient than the banks that came before us and at a drastically lower, transparent price.
“Staying profitable as we grow is an essential proof point in this journey. We need to be able to scale globally while building a business that people can trust will be here for the long term. The numbers show that we’re continuing to do that, while staying focused on bringing our service to everyone that needs it.”
Serving over 8 million customers worldwide, the company has also hit several milestones recently:
- Going borderless – TransferWise has expanded beyond its core money transfer product, with its borderless account replacing old-world international banking for its audience of expats, freelancers, and travellers. The accompanying borderless debit card is now available in the UK, Europe, USA, Australia, New Zealand and Singapore, with one million cards issued since 2018. Customers hold over £2 billion in borderless accounts today.
- TransferWise for Business – TransferWise for Business is also a source of significant growth for the company. 107,000 new business customers were onboarded in the financial year, alongside partnerships with small business favourites Xero and GoCardless. Today, over 10,000 new business customers join TransferWise every month.
- TransferWise for Banks – 12 bank partnerships across 4 continents now live, including challengers Monzo, N26, bunq, Neon, and most recently, Aspire in Singapore and Up Bank in Australia.
- $5 billion valuation – TransferWise announced a secondary sale of $319 million in July 2020, taking its total raise in primary and secondary funding to over $1 billion.