By Emily Nicolle on Friday 17 November 2017
The money transfer platform is on the up, posting its first annual profit.
As one of Europe’s largest fintech startups, TransferWise is showing significant growth after announcing its annual report for the fiscal year ending in March 2017.
The London-based firm’s annual revenue has grown by 140 per cent since last year, coming in at £67m this year compared to £28m in 2016. Its audited results show an adjusted operating profit of £2m, and an overall profit for the fiscal year of £7.4m.
As a result, TransferWise’s operating loss has decreased from £17m in 2016 to £56,000 in 2017. In a world where most digital financial disruptors are only beginning to break even, it’s safe to say that TransferWise could be an indicator of positive things to come for the fintech sector.
With over two million customers using the platform to transfer £1.5bn each month, the number of transactions made over the platform has also doubled since 2016. Research by TransferWise shows that its users save on average £2m every day on the platform compared to making the same transaction with a traditional bank.
Its current revenue run rate puts the company on course to generate £120m this year, and looks set to keep increasing as the company looks towards APAC expansion, as well as the launch of its Borderless consumer account in 2018.
Taavet Hinrikus, chairman and co-founder of TransferWise, said: “We’ve shown that you can be a sustainable company while charging the least amount possible and passing on the savings gained from innovation to end users.”
Earlier this month, the platform raised $280m in a Series E round, with multiple sources now valuing the platform at close to $1.6bn.
Hinrikus continued: “Our early investments in a solid foundation for the business have given us a global and growing customer base. But there are millions of consumers and businesses out there who are still being underserved, so our mission is far from complete.”