Global remittance startup Remitly is set to begin trading on the Nasdaq on Thursday (Sept. 23) under the ticker RELY with a per-share price of $43, above its expected range of $38 to $42, according to media reports.
Headquartered in Seattle and founded in 2011, Remitly will raise an estimated $300 million in net proceeds at a valuation of $6.9 billion. Remitly had a valuation of $1.5 billion in July.
Current stockholder PayU Fintech Investments B.V. is expected to purchase shares of stock with a combined purchase price equivalent to the IPO price, up to $25 million. The lead book-running manager for Remitly’s initial public offering (IPO) is Goldman Sachs.
Remitly enables people to send and receive funds around the world without the forms and codes that are traditionally part of the international money movement. The company provides digital financial services for immigrants and their families in over 135 countries.
In its filing with the Securities and Exchange Commission (SEC), Co-founder and CEO Matthew Oppenheimer said that he started Remitly with COO Josh Hug and Shivaas Gulati to “transform the lives of immigrants and their families by providing the most trusted financial services on the planet.” The firm now offers its suite of financial service offerings to over 1,700 corridors around the world.
The company posted $202 million in revenue against a $9.2 million net loss in the first half of 2021. Last year, Remitly generated $257 million in revenue and a $32.5 million net loss.
“Our customers are at the heart of everything we do. They are primarily immigrants from developing countries who have moved away from their families to seek new opportunities and build a better life for themselves and their loved ones … often sending money home multiple times per month,” per the SEC filing.
The company said that its customers’ unique experiences helped steer the development of the startup’s services and “underpins our commitment” to help them get money into the hands of family members back home.