Zepz, the parent company of popular money transfer brands WorldRemit and Sendwave, is actively seeking mergers and acquisitions following a recent reduction in its workforce. The company’s CEO, Mark Lenhard, revealed to CNBC that Zepz, with a valuation of $5 billion and prominent investors like Accel, TCV, and Leapfrog, aims to expand its portfolio of businesses and increase its presence in the global digital payments market.
Zepz allows users to easily send money internationally from their smartphones or computers, with recipients having the option to receive funds in their bank accounts, mobile wallets, or as mobile airtime top-ups. The company presents itself as a challenger to traditional banks and established money transfer services like Western Union, offering lower fees and faster fund transfers. Wise, a close competitor, also claims to provide cheaper international money transfers than banks.
Lenhard emphasized Zepz’s desire to become a central financial hub for specific segments, particularly focusing on migrant communities sending money back home. As part of its strategic plans, Zepz intends to launch its first digital wallet in the near future, recognizing the increasing importance of digital wallets in the growing market of cross-border payments.
While the decision to pursue mergers and acquisitions may seem surprising after recent job cuts, Zepz clarified that these measures were taken to streamline operations following its acquisition of U.S. remittances firm Sendwave. Lenhard expressed confidence in the company’s direction and hopes that the upcoming digital wallet product will attract customers away from competing digital banks and financial apps.
Like many other fintech companies, Zepz has been proactive in cutting costs due to the industry’s exposure to technology valuation downturns and various macroeconomic challenges, such as inflation and rising interest rates. However, Zepz notes that its WorldRemit business is less affected by these pressures compared to traditional banking. The company has experienced significant growth, with a 25% increase in overall customer transactions year-to-date and accelerated customer growth in specific areas.
Zepz aims to achieve profitability on a full-year basis in 2023 after achieving monthly profitability in the first half of 2022. Overall, the company is committed to expanding its market presence through strategic acquisitions and providing innovative solutions in the digital payments space.
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