UK FinTech startup Transferwise, incorporated in 2011 and unicornised rather recently, is now in news for reasons, most unicorn startups generally are not. Already a unicorn, TransferWise has now revealed that it has achieved profitability on an operational basis, thus posting a rare feat in the magical, mystical world of unicorns. In addition, the startup says it is on its way to touch the £100 million mark in revenues this year.
It is currently doing £8 million in revenue per month, and the revenues have grown by 150% last year. This implies the turnover could soar up to £67 million in the FY 17, as it reported revenues of £27.8 million in FY 16, with a pre-tax loss of £17.4 million. Taavet Hinrikus, CEO and co-founder, was quoted stating,
To have hit break-even just six years on from launch shows how strong the foundations of our business are. This is just the starting point. With the unique platform we’ve built, we’re looking forward to creating a new kind of financial services for the future.
Hinrikus mentioned the possibility of developing a new kind of financial services but chose not talk more about it. However, in an interview with TechCrunch, he said they are not seeking to apply for a full banking license. Owing to the brand that they have built and a userbase of a million, he told that the company is in a great position to help the users solve problems adjacent to what it already offers.
The remittance startup witnesses transfer of over £1 billion across its platform each month. With more than 1 million users already, it is looking to add another million users this year. It claims to have saved the users £1.5 million per day in foreign exchange fees. Hinrikus had also stated,
We’re building one of the few new global financial services brands that are coming out now. It’s hard to build a 10x better product, go to market and build your own brand; that’s why you see a lot of co-operation between banks and fintechs.
The UK-based FinTech unicorn is an international money transfer platform offering a more efficient way of transferring from country to country. With about £91 million in its coffers, TransferWise has been valued over a billion. It counts high-profile investment firms as its backers including Peter Thiel’s Valar Ventures, Andreessen Horowitz, Sir Richard Branson, and Max Levchin of PayPal.