Fintech/News/

Transferwise’s profits double despite pandemic

The London-based fintech managed to avoid the problems faced by its competitors.

By Freya Pratty

Transferwise’s profits over the last year doubled, as the company’s expansion strategy pays off and it appears immune to the problems of younger European fintechs. 

The 10-year-old British fintech reported pre-tax profits of £20.4m in the past twelve months to the end of March, up from £10.1m in the previous year. Transferwise’s revenues rose 70% to £302.6m, up from £177.9m in 2019.  

This is in contrast to other fintech companies such as Revolut, Monzo and Starling. Revolut reported in August that their losses had tripled in the previous year — up from £32m, to £107.4m. Similarly, Monzo reported that its pre-tax losses had grown to £115.4m, and Starling reported a loss of £53.6m.

“Staying profitable as we grow is an essential proof point in this journey,” Kristo Käärmann, Transferwise’s chief executive. “We need to be able to scale globally while building a business that people can trust will be here for the long term.”

“The numbers show that we’re continuing to do that, while staying focused on bringing our service to everyone that needs it.”

Transferwise processed £42bn in cross-currency transactions in the year up to March, up from £27bn the year before. The company has expanded rapidly in recent years, moving into the UAE, Japan and Malaysia in the past year. 

The company noted that it had experienced “volatility” due to “fluctuating volumes and dramatic shifts in currency values” since the coronavirus pandemic began, but said it was nonetheless trading “in line with expectations” as of June.  

Transferwise was valued at $5bn earlier this year after a secondary share sale, bringing the total it has raised through primary and secondary funding to more than $1bn. The company now has 8m customers around the world and 2,200 staff.

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