Rewire, an Israeli fintech startup that has developed a services platform for migrant workers, has been acquired by Remitly Global, a global digital financial services provider for immigrants and their families, for $80 million. The deal is for a combination of stock and cash.
The transaction is expected to close in the second half of 2022 and Remitly does not expect a material impact on its revenue or adjusted EBITDA outlook this year.
The acquisition comes just six months after Rewire raised $25 million in investments led by Migdal Insurance and Financial Holdings Ltd.
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Founded in 2015 by Guy Kashtan (CEO), Adi Ben Dayan (VP R&D), Saar Yahalom (CTO), and Or Benoz, Rewire says that it is shaping the way international workers manage their finances and that it is building the first “international borderless banking platform for migrants during their time abroad until their return home to a more secure future.”
In 2016 the company expanded its services, adding payment corridors in India and parts of Southeast Asia. Then, in 2018, Rewire introduced its first international prepaid MasterCard. In the same year it partnered with Standard Bank of South Africa and began offering money transfers to people in Africa.
Founded in 2011, Remitly is a digital financial services provider for immigrants and their families operating in over 170 countries around the world. Remitly helps immigrants send money home in a “safe, reliable and transparent manner.” The company boasts that its digitally-native, cross-border remittance app eliminates the long wait times, complexities and fees typical of traditional remittance processes.
“We are thrilled to join the team at Remitly and continue our important mission of making financial systems more inclusive for migrants as we see the community-based approach we have taken to build Rewire as highly complementary to Remitly’s approach,” said Guy Kashtan, CEO and co-founder of Rewire. “We see a huge opportunity as we combine forces to accelerate the adoption of some of the innovative products we have developed to enhance the lives of customers sending money around the world and managing their finances.”
“Rewire’s product enhances Remitly’s world-class remittance platform to support our shared mission to transform the lives of our customers,” said Josh Hug, Co-Founder and Chief Operating Officer, Remitly. “Rewire’s product team has focused on solving complementary problems remittance customers have, and we look forward to partnering with them to deepen Remitly’s customer relationships by solving these problems in a high-quality way.”