Zepz raises USD 267 million to expand in African markets

The funding round was led by venture capital firm Accel, with participation from Leapfrog and TCV. The International Financial Corporation (IFC), part of the World Bank Group, also committed up to USD 20 million in investment. While Zepz did not disclose its current valuation, it was previously valued at USD 5 billion during its 2021 funding round. This came shortly after WorldRemit’s acquisition of cross-border payment company Sendwave, a move that ultimately resulted in layoffs of over 25% of its workforce in May 2023 according to Yahoo. 

The company has put its plans for an initial public offering (IPO) on hold, as previously reported by Bloomberg. Zepz officials commented that while fintech funding has seen a resurgence, it is primarily benefiting well-established companies. They also noted that the remittance market remains highly fragmented, creating growth opportunities for Zepz, including the potential for acquisitions as customers increasingly shift from traditional cash transfers to digital services.

Background and market position 

WorldRemit was founded in 2010, and the company became the first Black-founded UK fintech to reach a USD 1 billion valuation, achieving unicorn status. Zepz reported full-year profitability in 2022 according to Yahoo. 

Representatives from Zepz pointed to periods of uncertainty, such as the COVID-19 pandemic, natural disasters, and geopolitical unrest, as times when remittances increase as people prioritise the financial needs of their families and communities. 

Yahoo Finance further reports that fintech firms have begun to see a return to funding opportunities in 2024 after a downturn in valuations. Notable examples include Monzo Bank, which raised funds at a valuation of USD 5.2 billion, and Revolut, which saw its valuation rise to USD 45 billion following a secondary share sale.