TransferGo

Idea

Introduction

Note to investors: Investors via Seedrs are investing on the same share price as the lead investors in the funding round, but into a different share class. Please see more information under "Round Details" below

TransferGo is a fast growing international money transfer platform, loved by the consumer (96% 5/5 TrustPilot and 75 NPS) in Europe and beyond. We are enabling global citizens—diaspora, expats and SMEs—to send money worldwide in real-time and at a fraction of the cost charged by traditional players.

Recently, we understand that we have become the first company in the market to offer completely free international money transfers.

TransferGo is an award-winning innovator in the international money transfer and blockchain space, recently recognised by Ripple as the Blockchain Innovator of the Year.

Today, TransferGo has more than 700,000 customers registered on its platform, adding an average of 1,000 new customers every day since May.

TransferGo’s vision is to provide a simple and unified solution for consumer finance in a complex and global society, by scaling our international money transfer proposition globally and introducing new value-added financial products.

Intended impact

According to the World Bank, the global remittances market is worth $600bn today, having grown 7% year on year. According to BI Intelligence, within this market the global digital remittances market today is just 6%. The rest is dominated by cash. According to the World Bank, today the average cost of sending money abroad is 7%.

TransferGo is here to capitalise on the foundational transition from cash to digital and build the next generation digital financial services brand enabling up to 100% cheaper, real-time, frictionless money movement between different financial networks.

Substantial accomplishments to date

• Achieved $1bn in all time transfer volume with 1.3m transactions year to date.
• Currently adding an average of 1,000 new customers to the platform every day.
• Launched the TransferGo NOW product, which enables under 30 min delivery guarantee for cross-border transactions with a fixed exchange rate.
• 67% gross profit margin*.
• Today, TransferGo is 100+ people strong with 5 offices in London, Vilnius, Berlin, Warsaw and Istanbul.
• TransferGo in 2018 has become one of the best-rated money transfer companies in the World, achieving a 96% rating on the independent review site TrustPilot.
• To date raised $16m from prominent VCs among which is Vostok Emerging Finance, listed on the Stockholm Nasdaq. Some of VEFs LPs include Fidelity.
• Believed to be the first company to launch completely FREE transfer option across global corridors.
• Launched blockchain powered real-time transfers to India via Ripple blockchain.
• Received Blockchain Innovator of the Year Award at the Ripple Swell Conference.
• TransferGo nominated by the Europas Awards in the “Fastest Rising Startup of the Year.
• TransferGo co-founder and CEO was listed in the Forbes Under 30 List in 2018.
• TransfeGo co-founder and CEO was listed by the FT in the New Europe 100 list of Innovators.

*Source: Unaudited management accounts.

Monetisation strategy

We believe that global citizens deserve access to fast and reliable money transfers that don’t break the bank. Our money transfer service offers migrants a cheaper alternative compared to incumbents, with customers saving up to 100% on transfer costs by using TransferGo.

Delivering total transparency throughout the entire transaction, we charge a fixed transfer fee and a 0.0%-2.2% fee for the currency conversion per transaction. The fixed transfer fee is dependent on the country where the deposits originate from, while the currency conversion rate relies on both the amount transferred and the country where the deposit originates from.

With the introduction of TransferGo FREE delivery option, the customer is now able to send money completely free of charge if they are willing to wait a couple of days for the transfer to be paid out.

Use of proceeds

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.

We understand that planned expansion requires adopting local requirements carefully, building trust through partnerships and offering important local-language support. The proceeds from this campaign will be allocated in the following way:

30% product development.
70% customer acquisition marketing.

Key Terms - Round Details

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.

The Series A preference shares are convertible to ordinary shares, in that the preference shareholder can choose to participate pro rata alongside Ordinary shareholders (ie if this would give them a greater return than the 1x preference) OR receive their 1x preferential return.

The Series A preference shares have anti-dilution protection. This means if shares are issued at a price below the price that the shareholders invested at, they will be issued new shares in order to not be diluted further. In the event that the company issues further shares at a valuation lower than the valuation in this round, this will dilute Ordinary shareholders.