The London-based company, which was founded in 2012, is available in 47 countries and has offices in Warsaw, London, Berlin, Istanbul and Vilnius.
With a customer base of upwards of 800,000 people – and almost 1,00 new ones per day – it’s one of the fastest money transfer services available. The company can perform “cross-network” transfers in 30 minutes.
The funding round was led by Vostok Emerging Finance and Hard Yaka. Other contributors included Revo Capital, U-Start Club and Practica Capital. TransferGo also got about $830,000 in equity crowdfunding from Seedrs.
TransferGo recently launched a free international money transfer service. The company claims it doesn’t charge a transaction fee or mark up exchange rates. This means users can transfer money around the world for no cost. The free service isn’t instantaneous, however. If a customer needs money sent in a more timely manner, the company has paid tiers for that specific purpose.
CEO Daumantas Dvilinskas told the outlet that his company created its own “proprietary technology and infrastructure” to allow it to do 30-minute transfers at low costs. It does this by partnering with banks close to where the money is being sent, and re-routing money when necessary to dodge extraneous charges. The company also does enough volume to be able to afford economies of scale at the point of conversation.
“We cross-sell our customers different delivery options based on how quickly they want to receive the money,” Dvilinskas said. “The TransferGo Now product, where customers can get a 30-minute guarantee, together with other speedy delivery options, effectively pays for the TransferGo Free product … at the same time, economies of scale have been decreasing our direct cost of transactions to a point when we can offer the free product in a sustainable fashion.”