London tech start-up Zepz is preparing a $6 billion listing in New York
London-based cross-border transfer startup Zepz is pricing an initial public offering (IPO) on Wall Street at an estimated $6 billion valuation, sidestepping pressure from the UK to entice more tech companies to sign up, reported Bloomberg Wednesday February 2 citing sources. with privileged information.
Zepz, formerly known as WorldRemit Group, could list in New York in the second quarter. The company would be advised by Goldman Sachs, JPMorgan Chase and Barclays.
Negotiations are still ongoing and no decision has been made regarding the size or timing of a potential public offering.
See also: WorldRemit hits $5 billion valuation and rebrands itself as Zepz
Zepz was started by Ismail Ahmed who wanted to do something about the high transaction fees charged for sending money to his family in East Africa. Since 2020, the startup has processed 50 million customer transactions. The company raised $292 million in a funding round in August that gave the startup an estimated valuation of $5 billion.
As the UK dangles incentives to get more tech startups to list publicly in London, many high-value companies and unicorns have opted for Wall Street. London changed the rules to give founders more control over their businesses post-IPO and created new talent visa opportunities. Research and development tax credits have also been extended.
Read more: UK tech IPOs rake in $8.8bn in 2021 to set new record
Zepz acquired international money transfer company Sendwave in 2021 and now has over 11 million users in 150 countries. Zepz is working to revolutionize the cross-border P2P payments market, which is estimated to be worth $1 trillion.
The company serves over 5,000 money transfer corridors, including emerging markets with high barriers to entry. It has established digital connectivity in underserved areas.
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