Financial technology firm TransferWise posted a profit for the third consecutive year, infrequently seen growth in the industry packed with startups that fight to find stability and equalize cost and expense.
London based company on Wednesday informed that its net profit following the tax hike to 10.3 million pounds in the financial year that ended on March 2019, has risen by 66% from that of the previous year and revenues of the company hiked up by nearly 53% reaching 179 million pounds.
TransferWise lately valued at 3.5 billion dollars has given a blow to the money transfer industry with its online facilities that according to TransferWise allow customers to transfer money internationally at prices offered by banks and similar platforms like Western Union and MoneyGram.
TransferWise was established in 2011 by two friends Taavet Hinrikus and Kristo Kaarmann with the targeted aim of bringing higher level transparency in foreign exchange fees.
According to the CEO of TransferWise, Kaarmann, “ the company was among the rare breed of unicorns that have established themselves along with creating a successful profitable business. This is actually rare but really important for internal motivation. We only know if the product works once the product works on its own and doesn’t require extra money to push it.”
Several other firms in the race, private companies worth 1 billion dollars and above are yet to create an annual profit. Monzo’s losses rose to 47.2 million pounds in the fiscal year ending February 2019 whereas Revolut had reportedly registered losses worth 14.8 million pounds last year for 2107.
TransferWise is supported by various high-profile investors inclusive of British billionaire Richard Branson, Silicom Valley venture capital firm Andreessen Horowitz and Valar Ventures l, the venture co-founded by Peter Thiel. Recently valued at 3.5 billion dollars and a 292 million dollar secondary share sale the firm is among the most valuable financial technology firms in Europe.
The firm now has about 6 million customers worldwide and operates at least 4 billion pounds in transactions per month. It’s customers possess over 1 billion pounds with its multi-currency account. TransferWise had earlier in the year commenced a new office in Brussels and mentioned that it would start the application process for a money transfer license to continue operating in the European Union in case of a no-fail Brexit.