London cross-border transfer startup Zepz is weighing an initial public offering (IPO) on Wall Street at an estimated $6 billion valuation, bypassing the U.K.’s push to drive more tech companies to list there, Bloomberg reported on Wednesday (Feb. 2) citing sources with insider information.
Zepz, formerly known as WorldRemit Group, could list in New York in the second quarter. The company is reportedly being advised by Goldman Sachs, JPMorgan Chase and Barclays.
Negotiations are still ongoing, and no decisions have been made regarding the size or timing of a potential public offering.
See also: WorldRemit Hits $5B Valuation, Rebrands As Zepz
Zepz was launched by Ismail Ahmed who wanted to do something about the high transaction fees being charged to send money to his family in east Africa. Since 2020, the startup processed 50 million customer transactions. The company raised $292 million in an August funding that gave the startup an estimated valuation of $5 billion.
While the U.K. is dangling incentives to bring more tech startups to list publicly in London, many high-valued firms and unicorns have been opting for Wall Street. London has changed rules to give founders more control over their companies post-IPO and created new visa avenues for talent. Research and development tax credits were also extended.
Read more: UK Tech IPOs Rake in $8.8B in 2021 to Set New Record
Zepz acquired international money transfer firm Sendwave in 2021 and now has more than 11 million users across 150 countries. Zepz is striving to revolutionize the P2P cross-border payments market, which is worth an estimated $1 trillion.
The company reaches 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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