Just this week, WorldRemit completed a $40 million financing and Azimo raised a $10 million funding round. What's their connection? Both companies are disrupting the money transfer industry, which for years has operated through networks of physical locations. Both WorldRemit and Azimo are among the companies that are shifting money transfer services to mobile and online, making the process of sending money to loved ones or paying bills much quicker, cheaper and more convenient.
According to the PitchBook Platform, VC investors have completed 54 deals involving companies in the money transfer industry since the beginning of 2011, with last year accounting for more deals in the space (22) than any other single year; the next highest deal count for a single year was 15 (reached in both 2010 and 2011). Additionally, activity in the first quarter of 2014 has already added up to more capital invested in the money transfer space ($58 million) than in any quarter since 3Q 2010. With deal counts and invested capital both rising as of late, it's clear that the money transfer industry is heating up, and the push is being led by those companies that are disrupting the space.