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Zepz Raises $267 Million to Expand in Africa

October 4, 2024

Zepz Raises $267 Million to Expand in Africa

Formerly known as WorldRemit, Zepz raises $267 million in funding from new and existing investors to fuel its expansion in its core African markets and beyond.

Accel led the round with participation from Leapfrog, TCV, and Coller Capital. Additionally, the International Financial Corporation, a global development institution and member of the World Bank Group, stated it will invest up to $20 million.

This new financing comes after the fintech raised $292 million in Series E round in August 2021 to continue investing in its technology, platform, and customer proposition, as well as to expand into new markets.

At the time, the funding announcement, which followed its acquisition of Sendwave, stated that Zepz was formerly WorldRemit Group, suggesting that WorldRemit rebranded to Zepz.

The former CEO, Breon Corcoran, stated that they were retaining both the Sendwave and WorldRemit brands, saying, “In that context, we are proud to announce the rebranding of our holding company to Zepz.”

Zepz is headquartered in London, with regional offices beyond the United States, including South Africa, Uganda, Kenya, Rwanda, Tanzania, and Zimbabwe.

Funds raised previously

Zepz operates WorldRemit and Sendwave, and the fintech claimed in 2021 that it serves over 11 million users across 150 countries. While its current valuation is undisclosed, the group was valued at $5 billion when it raised funds in 2021. Moreover, the firm reached EBITDA profitability in 2022.

Leapfrog, TCV, and Accel have been backing the fintech long before this new funding. They participated in Zepz’s $292 million funding round alongside new investors, including Farallon Capital.

According to Bloomberg, Zepz has paused plans for an initial public offering (IPO), adding that Harry Nelis, a partner at Accel, mentioned investors are not in a hurry for Zepz to join the public markets.

Mark Lenhard, Zepz’s Chief Executive Officer, stated that the firm still has room for growth.

“We certainly saw it during COVID. We’ll see it when there’s an earthquake. We’ll see it when there’s geopolitical unrest in the country,” he said in an interview.

“More money will flow in because people get concerned about their families, about their communities, and that’s their time of need.”

In May 2023, Zepz laid off more than 26% of its workforce, letting go of 420 employees from a total headcount of around 1,600. In November of the same year, Zepz reduced its headcount by 30.

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