Tracxn Remittance Startup Landscape Report, July 2016

Remittance Report, July 2016

TracxnWorld’s Largest Startup Research Platform

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Contents

Topic Page No.

Scope of Report 05

Entrepreneur Activity 07

Investment Trend 11

Who is Investing 19

Exit Outlook - IPO, Acquisitions 23

Sub Sector Analysis 26

Interesting Companies 41

Useful Links 50

Company List 52

Team 148

3

3


Illustrative Sectors We Track

ENTERPRISEINFRASTRUCTURE

ENTERPRISEAPPLICATIONS

MOBILEFINTECH

TECH CONSUMER EDUCATION HEALTHCARE

SECURITY

STORAGE

NETWORKING

MOBILITY

IT OPS

CLOUD INFRASTRUCTURE

API MANAGEMENT

BIGDATA INFRASTRUCTURE

SAAS

MOBILE-FIRST ENT. APPS

INTELLIGENT ENT. APPS

OPEN SOURCE

RETAIL TECH

MARKETING TECH

STEALTH MODE

VERTICAL SAAS

MOBILE COMMERCE

MOBILE PAYMENTS

MOBILE MARKETING

MOBILE DEV TOOLS

MOBILE HEALTH

MOBILE GAMING

MOBILE LEARNING

MOBILE COMMUNICATION

BITCOIN

PAYMENTS

INVESTMENT TECH

INSURANCE TECH

CROWDFUNDING

ALTERNATIVE LENDING

REMITTANCE

BANKING TECH

INTERNET OF THINGS

3D PRINTING

MARKETPLACES

FOOD TECH

EDUCATION IT

SELF LEARNING

LIFE SCIENCES

DIGITAL HEALTH


Sector Overview

Scope of report

The report contains companies which offer cross-border money transfer service to consumers allowing diaspora to send money back totheir family in home country. It includes companies that allow businesses to transfer money across border either to pay for theirsupplies, employee payment disbursements etc. All companies under the scope of the report provide an online or mobile based platformto send the money, however, offline agent based money transfer companies like Western Union and its comparable are also included.The report also contains companies enabling these money transfer service providers technology wise, along with online platforms thatprovide comparative list to choose from money transfer service companies. Companies which provide alternative remittance serviceslike transfer of mobile airtime & vouchers, bill payments, education payments are also included.

The scope of this report includes equity as well as debt funding received by the companies.

Business Model Descriptions

P2P Currency Matching Currency sent either way is matched and net-off to the receiver.

Local In-Local Out Banking partnerships to credit and debit locally.

Rebittance Money transfer leveraging bitcoin

Mobile Platform Mobile first companies allowing to receive money in mobile wallet and cash out from them

E-wallet Cloud money or e-wallet to store and send money

B2B Payments Cross border money transfers for enterprises

Alternative Remittance Transfer of mobile airtime, bill payments directly to merchant etc.

Enablers Back-end enabling solutions

Aggregator Platforms that provide comparisons of money transfer businesses on the rate and their services


Scope of Report

Entrepreneur Activity

Investment Trend

Who is Investing

Exit Outlook - IPO, Acquisitions

Sub Sector Analysis

Interesting Companies

Useful Links

Company List

Team

6

6


1721

39

48

76

67

3

0

16

32

48

64

80

2010 2011 2012 2013 2014 2015 2016 (YTD)

Nu

mb

er o

f C

om

pan

ies

7

YoY – Number of companies founded

WorldRemit Remitly Azimo Circle Uphold Instarem Ozaremit

TransferWise Kantox Currency Cloud BitPesa Abra Airwallex FinMates


Large Upcoming Sectors


Niche Upcoming Sectors


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

10

10


YoY – Number of Rounds and Total Funding

$10M

$38M

$2M

$71M

$39M

$72M

$246M

$570M

$218M

3

43

1415

37

41

52

22

0

12

24

36

48

60

0

120

240

360

480

600

2008 2009 2010 2011 2012 2013 2014 2015 2016 (YTD)

Nu

mb

er of R

ou

nd

sFu

nd

ing

Am

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(in

Mill

ion

s)

Funding Amount Number of Rounds

Note: The funding includes debt rounds also.


YoY – Number of Rounds by Stage


YoY – Funding by Stage


Average Ticket Size – Early Stage


Top investments in last one year


Top investments in last one year


Funnel view of Sector


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

18

18


Most Active Investors in Sector

7 7 7

6 6

5 5 5 5 5

0

1

2

3

4

5

6

7

8

Accel Pantera Capital Seedcamp Digital CurrencyGroup

QED Investors 500 Startups Index Ventures Kima Ventures RRE Ventures SVB FinancialGroup

Tota

l Nu

mb

er o

f C

om

pan

ies

Circle Abra TransferWise Circle Remitly ZipZap TransferWise TransferWise Ripple WorldRemit

WorldRemit Align Commerce Revolut BitPesa Flywire CoinPip Revolut Afrimarket Boom Financial Xoom


Where are Top Investors investing


Top Investor by Stage of Entry


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

22

22


Top IPO Companies

IPO Date Company OverviewFunding Amount

Exch:Ticker

Jul-2015 paypal.comPayPal

(San Jose, 1998)

Internet payment services providerQualcomm, Goldman Sachs, Sequoia Capital, Deutsche Bank, Plug and Play Tech Center, Bankinter, ING, BlueRun Ventures, Madison Dearborn Partners, Temasek, Vertex, Hikari Tsushin, Compass Technology Partners, Singtel, Capital Group, Amidzad, Clearstone Venture Partners, 2020 Ventures, GIV Management, March Venture Partners

$194M NASDAQ:PYPL

Feb-2013 xoom.comXoom

(San Francisco, 2001)

Internet first, direct to bank money transfer service with cash out location service available as well.Sequoia Capital, NEA, SVB Financial Group, Glynn Capital, DAG Ventures, Fidelity Ventures, Northgate, Clarium, F-Prime Capital Partners

$106.44M NASDAQ:XOOM

Oct-2006Western Union

(Englewood, 1851)Agent network based remittance service provider. Also provides online service for personal and business usage.

- NYSE:WU

Jul-2004MoneyGram (Dallas, 1940)

Agent based remittance service provider. - NASDAQ:MGI

Jan-2001Earthport

(London, 1997)A banking network hub providing a global ACH for money transfer service - LON:EPO


Major Acquisitions in last one year


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

25

25


July 2016Tracxn BlueBox : Remittance400+ companies in the sector, 83 funded in last 5 years, $730M invested in 2015/16


Top Business Models by Funding

$410M

$317M

$210M $200M

$155M

$96M$73M

$56M

$20M$2M

0

90

180

270

360

450

Local In - LocalOut

B2B Payments e-wallet P2P CurrencyMatching

Rebittance AlternativeRemittance

Enablers Mobile Platform Offline Aggregator

Tota

l Fu

nd

ing

Am

ou

nt

(in

Mill

ion

s)

# Cos. 119 37 11 18 51 39 39 48 25 26

Avg. Age 2007.9 2010.2 2007.5 2005.4 2009 2011.7 2008.8 2008.8 2007 2008.5

WorldRemit Ebury PayPal TransferWise Circle Flywire RippleBoom

Financial

UNISTREAM Money Transfers

Global

Forex Express Corp

Xoom Payoneer Uphold Azimo Abra BlueKite Fastacash Sendwave UREMIT TawiPay


Local In - Local Out – Business Model Description


Local In - Local Out – Entrepreneur Activity and Investment Trend


Local In - Local Out – Most Funded Companies


B2B Payments – Business Model Description


B2B Payments – Entrepreneur Activity and Investment Trend


B2B Payments – Most Funded Companies


P2P Currency Matching – Business Model Description


P2P Currency Matching – Entrepreneur Activity and Investment Trend


P2P Currency Matching – Most Funded Companies


Rebittance – Business Model Description


Rebittance – Entrepreneur Activity and Investment Trend


Rebittance – Most Funded Companies


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

40

40


Interesting Unfunded Companies

Company Overview Business Model

FinMates(2016, Singapore)

On-demand money transfer service leveraging bitcoin Rebittance – Uber Model

Borderless(2015, NYC )

Online P2P currency exchange along with a travel cardP2P Currency Matching

Synops(2016, London )

Foreign exchange risk management solution providerEnablers – Risk Mangement

SendVoucher(2015, Munich )

Allows to send vouchers across borders Alternative Remittance – Voucher & Gifts

ParityPay(2015, Slat Lake City )

Allows US employers to offer foreign workers to receive a portion of their pay in their home currency

B2B Payments – Mobile Platform

AirTM(2015, Mexico City )

Dollar based cloud money storage service provider using Uphold’s technology E-wallet

Curated list of companies by the sector analyst are defined as Interesting


Interesting Seed Companies


Interesting Series A Companies


Interesting Series A Companies


Interesting Series B Companies


Interesting Late Stage Companies


Interesting Late Stage Companies


Deadpooled Companies


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

49

49


Useful Links

Slide Title Content Platform Link

List of All Companies in readable format Companies Link

Large Upcoming Sectors Entrepreneur Activity Link

Niche Upcoming Sectors Entrepreneur Activity Link

Top investments in last one year Investment Trend Link

Top IPO Companies Exit Outlook - IPO, Acquisitions Link

Major Acquisitions in last one year Exit Outlook - IPO, Acquisitions Link

Local In - Local Out – Most Funded Companies Sub Sector Understand Link

B2B Payments – Most Funded companies Sub Sector Understand Link

P2P Currency Matching – Most Funded Companies Sub Sector Understand Link

Rebittance – Most Funded Companies Sub Sector Understand Link

Deadpooled Companies Companies Link

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http://tracxn.com/theme/feedview/546b1b8be4b02290c3c56dbc#feedName%3DRemittance%7CbusinessModel%3D572b3ea1e4b06f47d5c46bd1%3ARebittance

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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

51

51


Remittance – Company List

COVERS THE FOLLOWING SECTORS

P2P Currency Matching

Local In -Local Out

Mobile Platform

E-wallet Rebittance OfflineAlternative Remittance

AggregatorB2B

PaymentsEnablers


P2P Currency Matching (1/4)


Local In-Local Out

Mobile Platform


Aggregator B2B Payments Enablers

Company Details Funding Investors

TransferWise [London, 2010]: TransferWise is a peer-to-peer and business behalf money transfer service.Charges 0.5% as money transmission commission and money is converted at the interbank rate. Supports 17currencies in 39 countries. The company holds bank accounts in all operating countries and works on acurrency swapping model. Strategic angels include PayPal founder Max Levchin. Sir Richard Branson alsoparticipated in the Series B & C rounds.

$116.37M

Andreessen Horowitz, IA Venttures, Index Ventures, SV Angel, Seedcamp, Kima Ventures, Valar Ventures, Baillie

Gifford, Firestartr, Valar Ventures, Mosaic Ventures

Azimo [London, 2012]: Azimo is a cross border consumer money transfer services. Serves customers in 195+countries, offering them convenient ways to pay and fair, transparent pricing. Azimo gives customers theoption to donate a portion of the money they transfer to charities working in developing countries and hasactive partnerships with charities.

$46.48M

Greycroft Partners, Rakuten, e.ventures, Anthemis Group, Accion,

b-to-v Partners AG, Frog Capital, Infinity Ventures, Raffay, Beacon Capital, MCI Capital, TA Ventures, Quona Capital, krw-schindler.com

CurrencyFair [Dublin, 2009]: CurrencyFair allows individuals and businesses to exchange currencies and sendfunds to bank accounts worldwide. It uses a unique person-to-person online marketplace to facilitate currencyexchange between users, in a simple and anonymous fashion. CurrencyFair is regulated by the Irish FinancialRegulator as an Authorised Payments Institution.

$24.35MEnterprise Ireland, Frontline Ventures,

Octopus Ventures, dfjesprit, Proxy Ventures

WeSwap.com [London, 2010]: WeSwap is the world’s first person to person currency exchange for thetraveler. Users swap currency with each other at the interbank exchange rate and pay a transparent fee. Aswell as an online account which can hold multiple currencies, users receive the WeSwap PrepaidMasterCard(R) which enables them to access the funds in their account anywhere that accepts MasterCard.

$9.5M EC1 Capital, IW Capital

KlickEx [Auckland, 2008]: KlickEx provides a online platform to users to exchange currencies with each otherrather than going through a bank. Currently, it deals with 5 currencies namely, Bristish pounds, New Zealandand Australian dollars,Tongan Pa'anga and Samoan Tala of Samoa. The users transfers money to KlickEx andmention the beneficiary details and then request an exchange, which is then matched to other users whowants the other currency at the same rates and henceforth the money are transferred to the beneficiary. Italso allows to top up mobiles via its KlickEx Pacific brand.

$1.65M

http://www.transferwise.com/

http://www.azimo.com/

http://www.currencyfair.com/

http://www.weswap.com/

http://www.klickex.com/




Local In-Local Out

Mobile Platform




Midpoint & Transfer Ltd [London, 1998]: Midpoint is a peer to peer Foreign Exchange and InternationalPayments Platform that eliminates the middlemen from the foreign exchange component of the transaction.By directly matching businesses and individuals with opposite currency needs, they are able to eliminate the'spread or margin' component from all transactions. Charges a single flat fee, depending on the amount oftransaction. This includes the delivery of funds to your Payee's bank account. Midpoint & Transfer Ltd is asubsidiary of Midpoint Holdings.

$1.1M

First Remit [London, 2013]: FirstRemit is a money transfer service for business and individuals,headquartered in London, England with operations in Bursa, Turkey. Offers money transfer services betweenEU countries and Turkey to more than 200 countries worldwide. For the first one million USD transfer, FirstRemit offers completely free transfer services as an added bonus. Revenues were $350k in 2013 and $80M in2014.

$400k

The PayPro [London, 2015]: PayPro provides a payment platform for SMEs and individuals, enabling them tomanage their international payments in any EEA currency, thus resulting in considerable savings in fee ascompared to banks. It offers sending and receiving payments in over 10 currencies in the EEA thus claiming tosave over 90% of hidden costs. The user uploads the funds in PayPro's segregated account, which are thenmatched to another clients' need using P2P. The money is then transferred to the beneficiary's account.

$337k LantaDigitalVentures, Idodivc

MoneySwap [Hong Kong, 1999]: MoneySwap’s peer to peer online services enable individuals and businessesto exchange currencies, and make payments and fund transfers between them. Users are able to determinetheir own rates thereby eliminating the middle man and reducing costs. Payment and fund transfer can bedone between users or wired to external bank accounts anywhere in the world. MoneySwap providesmerchants access to the spending power of over 3.5 billion UnionPay cardholders. MoneySwap’s paymentgateways are certified by UnionPay and accept payments from cardholders for online and point of salespurchases. MoneySwap provides a complete solution which includes payment settlements in multi currenciesand online access to transaction reports and support. UnionPay is the largest bankcard brand in China, and iswidely accepted in more than 125 countries.

$150k Empire Realty Group

http://www.midpoint.com/

http://www.firstremit.com/

http://www.thepaypro.com/

http://www.moneyswap.com/




Local In-Local Out

Mobile Platform




TranSwap [Singapore, 2015]: TranSwap is a P2P currency exchange platform that matches FX needs of userswith other users at the mid-market exchange rate. The money is transferred to the segregated account ofTranSwap, the currency exchange of the users are matched accordingly.

Quest Ventures

Kuan [London, 2015]: Kuan is online foreign exchange and money transfer platform provider using P2Pmatching technology. The company matches the currency value required between two countries and net offsthe corresponding value reducing time and rate. Kuan offers real time exchange rate. Users after choosingtheir pair of currencies, transfer money to Kuan, further to which Kuan matches the currency requirementsand credits the receivers' account.

Startup Wise Guys

FreemarketFX [London, 2011]: FreemarketFX provides foreign currency exchange and money transfer serviceprovider, which offers individuals and businesses to send money at flat 0.2%. Freemarket is a marketplacewhere both companies and individuals can directly match their currency requirements with their peers for thefixed service fee.

VentureFounders

MatchMove Exchange [Kuala Lumpur, 2015]: MatchMove Exchange is a mobile first P2P currency exchangecommunity platform where users can exchange their currencies within themselves. The platform claims thatits users can exchange 300 currencies and save up to 3% by having transaction through its mobile app.

Borderless [New York City, 2015]: Borderless provides a P2P foreign exchange service matching the forexneeds of individuals sending and receiving across borders. It also provides a travel card that can be usedglobally to purchase online and offline. As of April 2016, the company has not rolled out its services fully.

http://www.transwap.net/

http://www.kuaninc.com/

http://www.freemarketfx.com/

http://www.exchange.moneymatch.co/

http://www.bborderless.co/




Local In-Local Out

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Mobile Platform (1/10)


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e-wallet (1/3)


Local In-Local Out

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e-wallet (2/3)


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e-wallet (3/3)


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Rebittance (1/11)


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Rebittance (2/11)


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Rebittance (3/11)


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Rebittance (4/11)


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Rebittance (9/11)


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Rebittance (10/11)


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Rebittance (11/11)


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Offline (1/6)


Local In-Local Out

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Offline (2/6)


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Offline (3/6)


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Offline (4/6)


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Offline (5/6)


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Offline (6/6)


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Aggregator (1/6)


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B2B Payments (1/8)


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B2B Payments (2/8)


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B2B Payments (3/8)


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B2B Payments (4/8)


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B2B Payments (5/8)


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B2B Payments (6/8)


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Enablers (1/10)


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

147

147


Team

Rohit Bhattacharya

Analyst – Fintech

Tarun Bansal

Lead Analyst – Fintech

https://in.linkedin.com/in/rohit-bhattacharya-60336259

https://twitter.com/iamrohitb

https://www.linkedin.com/in/tarunbansal19

https://twitter.com/tbansal19

Data & Analytics

Tracxn Remittance Startup Landscape Report, July 2016