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Fintech Company Payoneer Raises $180 million

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Fintech Company Payoneer Raises $180 million

US fintech company that helps businesses transfer and receive money online, Payoneer has raised $180 million (£141 million) in a Series E funding.  The cash comes from Technology Crossover Ventures (TCV), a Silicon Valley-headquartered VC fund that focuses on growth funding for established tech industries. TCV has backed giants such as Facebook, Netflix, and Spotify.  The funding round is double Payoneer’s funding to date and takes its total to $270 million (£211 million). CEO Scott Galit wouldn’t comment on the company’s valuation but it’s likely in the billions given the amount of equity doled out. 

Founded in 2005, Payoneer has two major parts to its business: helping small and medium-sized businesses make overseas payments online; and helping global tech giants like Amazon, Airbnb, and Google, to pay consumers around the globe.  The first part of the thesis is that businesses of all sizes, all over the world are increasingly technology-enabled, connected, and global. Any business of any size anywhere in the world is able to access technology and access the rest of the world in a way that wasn’t possible before.  The second part of the thesis is there’s a last mile for money. It’s local, it’s regulated, it’s controlled by financial institutions and the regulators that regulate them and we don’t actually believe that’s going to change. But what we see is this increasing gap between what businesses need and what the incumbent banking infrastructure is able to give.  Galit said “Payoneer is processing billions of dollars a year and is getting 250,000 applications from SMEs each month”. It has customers across 200 countries and can do localized payments in 130 countries.  New York-headquartered Payoneer employs 800 people from Silicon Valley to Tokyo and opened new offices in India, Japan and the Philippines this year. 

The fundraising will go towards further expansion trough an estimated 350 million small and medium enterprises in emerging markets with transforming results on small businesses in retail industry.

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