WorldRemit, a leading provider of global cross-border payment services, has plans to acquire Sendwave, a US-based Africa-focused remittance app. The acquisition will be completed in cash and stakes by the fourth quarter of 2020. The deal is subject to licensing and regulatory approvals.
Founded in 2010, WorldRemit now enables over 4 million customers to send 90 currencies to 150 countries. Accel, TCV, and Leapfrog are some of its investors.
Like WorldRemit, Sendwave allows customers to send money across borders in a cost-efficient and efficient way. Drew Durbin and Lincoln Quirk founded Sendwave in 2014. It has become a leading digital remittance service provider in Eastern and Western Africa, as well as Bangladesh in Asia. It offers instant and secure digital payment services at no or low-cost. It has been helpful, especially during when the COVID-19 pandemic caused a ban on international travels and limited in-person transactions for people to maintain social distances.
According to a press statement, both WorldRemit and Sendwave have processed $7.5 billion –worth transfers and generated approximately $280 million in revenue in the last 12 months. This sums up to over 50% YOY growth for the year ended in June 2020.
When the deal is done, the combined company sending will have over 100 sending licenses for every US state, across a network of over 200 and receiving countries across 8000 payments corridors. Sendwave will still operate independently and retain its apps, brand, management team, employees, and key partners.
In other news, Liberia’s Lonestar Cell MTN has partnered with Sendwave to enable customers to receive international remittances from the United States via their MoMo wallets.