London-based fintech TransferGo has successfully secured its initial €11.1 million funding target through its equity crowdfunding campaign on Seedrs. The round, which was launched at the end of October, sought to originally raise €11.5 million but has since changed the round’s minimum goal to €11.1.
As previously reported, TransferGo currently offers transfers between nearly 50 countries and recently claimed to be the first remittance company to offer a cryptocurrency trading facility with customers now able to purchase and sell five cryptocurrencies, which are Bitcoin, Bitcoin Cash, Ethereum, Ripple, and Litecoin. TransferGo reports more than 700,000 customers registered on its platform, adding an average of 1,000 new customers every day since May. The company is raising the funds at a pre-money valuation of €58,742,945.
“TransferGo is the most convenient way to send money abroad for migrants and businesses: 10x cheaper than banks and cash bureaus; same business day delivery and a guaranteed destination amount without any extra charge.”
Speaking about the company’s growth and development, the TransferGo team recently revealed:
“Now that TransferGo has established itself as a player in the European CEE remittance space, the focus is two-fold: scale the international money transfer offering globally by focusing on the emerging markets, and introduce new products for existing and new customer segments. Having so far focussed on remittances from the UK, Germany and Scandinavia to countries in Eastern Europe, we are now looking to shift our core markets into new remittance corridors throughout Europe and the Baltics.”
The funds from the campaign will be allocated in the following way:
- 30% product development
- 70% customer acquisition marketing
The company then added:
“The lead investors in this round, representing £10,542,457, will receive Series A Preference Shares, while investors through Seedrs will receive Ordinary Shares. The Series A preference shares have a right to receive 1x their initial investment ahead of ordinary shareholders in the event of a liquidation, distribution of proceeds or exit. These are non participating preference shares meaning that once 1x the initial investment is paid any surplus is distributed to the ordinary shareholders on a pro-rata basis. In the event that the company is sold at a valuation lower than the valuation in this round, this will reduce the returns available to Ordinary shareholders.”
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