Zepz Secures $267 Million to Expand Operations in Africa

Zepz, formerly WorldRemit, raises $267 million to expand in Africa

London, UK – Zepz, formerly known as WorldRemit, has raised $267 million in funding to drive its expansion across key African markets and beyond. The funding round was led by Accel, with additional participation from Leapfrog, TCV, and Coller Capital. The International Finance Corporation (IFC), a member of the World Bank Group, also committed up to $20 million in investment.

This latest financing follows Zepz’s $292 million Series E round in August 2021, which was aimed at enhancing its technology, platform, and customer proposition while expanding into new markets. The fintech company had announced its rebranding to Zepz following its acquisition of Sendwave, while still operating both the Sendwave and WorldRemit brands under its umbrella.

Headquartered in London, Zepz has regional offices in the United States, South Africa, Uganda, Kenya, Rwanda, Tanzania, and Zimbabwe. The company claims to serve over 11 million users across 150 countries. While its current valuation remains undisclosed, Zepz was valued at $5 billion during its 2021 funding round. The firm also achieved EBITDA profitability in 2022.

Long-time investors Leapfrog, TCV, and Accel have been key financial backers of Zepz, having also participated in its previous funding round. According to Bloomberg, the fintech company has paused its plans for an initial public offering (IPO), with Accel partner Harry Nelis stating that investors are not rushing Zepz to enter the public market.

Mark Lenhard, Zepz’s Chief Executive Officer, emphasized the company’s continued growth potential, particularly in response to global crises.

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

Despite its growth trajectory, Zepz has undergone significant workforce reductions. In May 2023, the company laid off over 26% of its workforce, cutting 420 employees from a total headcount of approximately 1,600. Later in November 2023, it implemented a further 30% reduction in staff.

With this fresh round of funding, Zepz is poised to strengthen its presence in Africa and continue its mission of enabling seamless global money transfers.