Boston FinTech Flywire Could Go Public With $3 Billion Valuation This Year

Boston-based FinTech Flywire submitted a draft registration statement with the U.S. Securities and Exchange Commission (SEC) in another step toward an initial public offering (IPO), the startup said in a Thursday (March 11) press release.

The number of shares being offered and the price range have not yet been decided, Flywire said. The company processes payments in more than 240 countries and territories worldwide and said it offers over 250 payment methods to its 2,250-plus clients.

Earlier this month, Flywire said it raised $60 million in a Series F funding round led by Whale Rock Capital Management, Marshall Wace LLP and Sunley House Capital. Existing investors participating in the round included Spark Growth, Goldman Sachs, Temasek and Adage Capital Management.

The new funding will be used to upgrade the platform and advance its growth strategy, which includes expanding into new global markets and making strategic acquisitions. 

“Flywire’s mission is to deliver the most important and complex payments,” CEO Mike Massaro said in the funding announcement. He added that the funding from new investors “underscores our core value proposition to our clients,” and also validates its healthy performance as a company.

The payments processor is working with Goldman Sachs, one of its biggest backers, and JP Morgan Chase. The proposed IPO could give the firm a valuation of $3 billion, Reuters previously reported.

Founded by Iker Marcaide in 2011, some of Flywire’s bigger backers include Goldman Sachs, Temasek and Bain Capital. The start-up processes payments within the travel, health and education sectors. 

In a January interview with PYMNTS, Massara said the pandemic posed unique challenges for cash flow management and forecasting for the higher education system. Further, the travel and healthcare sectors had to allow for payments flexibility in order to meet their clients’ needs.

As households take on increasingly larger percentages of their health insurance, Flywire told PYMNTS that this year will be the perfect time to extend healthcare payment plans.