Fintech Zepz scores $267M to expand cross-border payments platform

Zepz, previously known as WorldRemit, a leader in the money transfer sector, has successfully raised $267M to expand into African markets.

The funding round was led by the venture capital firm Accel and saw participation from TCV and Leapfrog, according to a report from BNN Bloomberg. Additionally, the International Financial Corporation, part of the World Bank Group, committed up to $20m.

This significant investment aims to accelerate Zepz’s expansion efforts primarily in its core African markets and other regions. The company has shifted its focus from an earlier plan for an initial public offering, as indicated by reports from Bloomberg.

This new financing comes after the fintech raised $292 million in Series E round in 2021. shortly after it acquired cross-border payment firm Sendwave and rebranded. 

The company intends to use the funds to expand operations and its business reach beyond the African markets. 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 to join the public markets.

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

While its current valuation is undisclosed, it was valued at $5 billion when it raised funds in 2021. Despite claiming to have reached full profitability in 2022, Zepz laid off more than 26% of its workforce, letting go of 420 employees from a total headcount of around 1,600 in early 2023. A few months later, it reduced its headcount by 30.