WorldRemit Projects Nearly $ 100 Million In Revenue In Africa By 2018
(Agence Ecofin) – WordlRemit, a company operating in the transfer of money via virtual platforms, plans to double the volume of its African activities at the end of each of the next two years (2017 and 2018), said its managing director. Ismail Ahmed, according to comments reported by Bloomberg. In 2016, Africa generated half of the company’s $ 52.6 million in revenue. Under these conditions, it is expected to be raised to just over $ 100 million by the end of fiscal 2018, if things remain as they are.
WorldRemit wants to take advantage of an African market where the deficit in banking services has opened the door to financial transactions via mobile. According to a latest report from the GSMA, an international association that brings together and defends the interests of mobile operators around the world, the region had $ 277 million as of December 31, including nearly 170 million active, the previous 30 days. Beyond the growing local African market, the operator based in London in Great Britain also aims to capture the market for remittances from migrants to their families in Africa.
He has signed cooperation agreements with telephone giants, such as Safaricom (Vodafone Kenya) or the South African MTN Group. However, WorldRemit’s ambitions will have to come up against competition in particular from MFS Africa, a firm specializing in the development of value-added services for electronic wallets, and which announced in November 2016 that it already had 120 million customers in Africa.
WorldRemit shouldn’t be afraid of the competition. It secured a $ 40 million contribution for its startup from Accel Partners Ltd, a venture capitalist who had previously backed Facebook. It also received $ 100 million in funding from investment firm Technology Crossover Ventures. The firm will also have to resist the challenges of regulation, especially in Central Africa where the regulator is examining how to regulate the international transfer of money via mobile.