Zepz, the parent company of leading African cross-border payment platforms WorldRemit and Sendwave, has announced a successful $267 million funding round. This latest investment comes just two years after the company achieved profitability, underscoring its strong financial performance.

Led by venture capital firm Accel, the funding round saw participation from existing investors Leapfrog, TCV, and Coller Capital. Additionally, the International Financial Corporation (IFC) has pledged to invest up to $20 million.

Zepz plans to utilize the fresh capital to expand its operations across Africa, building on its existing presence in over 150 countries. This strategic move comes as cross-border payments continue to grow in importance within the region.

A Pause in IPO Plans

While Zepz previously considered going public in 2022, the company decided to postpone its IPO plans due to accounting-related issues. According to Harry Nelis, partner at Accel, Zepz’s investors are not rushing towards a public listing.

Layoffs and Workforce Optimization

In recent months, Zepz has implemented workforce optimization measures, resulting in layoffs affecting 26% of its employees in May 2023 and an additional 30 people in November 2023. The company attributed these decisions to redundancy and duplication of roles within the organization.

About Zepz

Founded in 2010 by Ismail Ahmed, WorldRemit, a subsidiary of Zepz, pioneered the use of mobile technology for international money transfers. The company quickly gained traction and achieved unicorn status in 2019, becoming the UK’s first Black-founded fintech to reach a $1 billion valuation.

Zepz’s acquisition of Sendwave in 2021 further solidified its position as a leading player in the cross-border payments market. Today, Zepz offers a wide range of services, including bank deposits, mobile money, and cash pickups, making it easy for users to send and receive money globally.

Mark Lenhard, CEO of Zepz, on Future Growth:

“We see significant growth potential for Zepz, especially in the context of global unrest and economic uncertainty. People are increasingly concerned about their families and communities, leading to a surge in cross-border remittances.”