Rewire Raises $20M To Extend Financial Services For Migrant Workers
Israeli fintech startup Rewire, a company that develops cross-border online banking services tailored to expatriate workers worldwide, announced on Tuesday it had raised $20 million in Series B funding.
The company also announced a significant line of credit from a leading bank.
Israeli active crowdfunding platform OurCrowd led the round which also included new investors Renegade Partners, Glilot Capital Partners (through its early growth fund Glilot+), and Jerry Yang, former Yahoo CEO and director at Alibaba, through AME Cloud Ventures. They were joined by current investors Viola Fintech, BNP Paribas through their venture capital fund Opera Tech Ventures, Moneta Capital, and private angel investors.
Rewire was founded in 2015 “with the vision to empower every migrant to fulfill their financial potential for a better future,” the company said. The startup helps users save on fees and rates when sending money from Israel to one of more than 20 countries. Their services are accessible from any device connected to the internet and offers savings on currency
The current round of funding will enable the company to continue enhancing its product portfolio and services, as well as its strategic partnerships in the migrant’s country of origin and the country in which they currently reside, Rewire said in a statement.
The company recently secured its EU Electronic Money Institution license (EMI), granted by the Dutch Central Bank, which allows it to issue electronic money, provide payment services, and engage in money remittance. Rewire was also granted an expanded Israeli Financial Asset Service Provider. Acquiring these licenses is another major step for the fintech startup in its mission to provide secure and accessible financial services for migrant workers worldwide.
Rewire said it plans to enrich its platform with new value-added services such as bill payments and insurance, in addition to credit and loan services, investments, and savings.
“I was most impressed with Rewire’s understanding of its customers and the unique pain points of migrants around the world. As an investor, it’s crucial to know that alongside a solid business plan there’s a wider view of social impact,” Jerry Yang said, “Rewire proves to have both.”
“At our core, we aim to create financial inclusion,” said Rewire CEO Guy Kashtan. “Everything that we do at Rewire is aimed to help migrants to build a more financially secure future for themselves and their families. To do so, we aim to provide services that go beyond traditional banking services such as insurance payments in the migrant’s home country and savings accounts.”
OurCrowd’s CEO Jon Medved said the crowdfunding platform has been strong supporters of Rewire since its inception, investing in the seed round and leading the current round.
“It is a real pleasure to be proven right about our initial investment thesis, especially when this company is not only producing great results and growing at a very rapid rate, but also helping so many people achieve financial inclusion and get absolutely necessary banking services from a great platform like Rewire,” he said.