Remitly, a Seattle-based P2P payments provider specializing in overseas remittances, announced it has secured $38 million in new financing. The company said it will use the new capital, garnered in a mix of new equity and debt financing, to fund expansion in the Latin America region. Remitly launched in 2011 mainly as a way for migrants to send money to the Philippines and other Asian countries. The company has since expanded into other regions. Last year it began facilitating transfers to Mexico and the new cash infusion will enable it to expand to other countries in Central and South America including Colombia, Ecuador, Guatemala, Honduras, El Salvador, Nicaragua and Peru.
“Remitly’s mission is perfectly aligned with IFC’s long-standing objective of helping the private sector find solutions that benefit the world’s poor,” said Kai Schmitz, head of fintech investments in Latin America for IFC, the World Bank Group member that led the investment. “Transfers by migrants to their home countries is a proven way to improve the lives of families and support emerging market economies. The World Bank is actively working with the G20 and other partners to increase choice for senders and lower the cost of remittances.”