In the currency exchange sector, many firms are gaining traction as they provide customers with foreign transfers at below bank costs. The attraction for consumers has led to startups in the sector to report strong growth as well as pricey valuations. Despite a growing list of fintech firms entering the cross-border currency exchange market, by providing value to users, they have been able to grab market share from higher cost incumbents.
Among startups experiencing growth with their platforms in the currency transfer market is Azimo. But, unlike many of its peers that are also based in in the UK, and cater to higher ticket size currency transfers from small and medium businesses like Kantox, or primarily serve exchanges between major countries like TransferWise, Azimo has its eyes on the remittance market.
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Currently serving transfers to 200 countries with 80 currencies, Azimo works with local partners to provide pickup and delivery of currencies for its customers. The partnership model has allowed Azimo to leverage its platform to a growing list of locations, without requiring the opening of local offices to handle the business.
Gaining additional resources to continue its expansion plans, Azimo has closed a $20 million Series B funding round. Bringing its total funds raised to $31 million, the current round included investments from Frog Capital, MCI Investments, e.ventures and Greycroft Partners. According to TechCrunch sources, the funding values Azimo at just below $100 million.
Overall, the funding continues to reveal investor demand for currency exchange firms. Earlier in the year, TransferWise raised $58 million in funding, while Kantox completed an $11 million round last month.