The Israeli startup Rewire helps migrant workers manage their finances in a simpler way both in the country where they work, and in the country of origin; The founder: “Very satisfied with the sale. We prioritize the employees, shareholders and customers”
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A 7-year journey officially ends today (Tuesday), when the Israeli fintech startup Rewire, which develops a money transfer product for migrant workers, announces that it has been acquired by the money transfer company Remitly. The American company will pay 80 million dollars for the Israeli startup in a deal that combines shares and cash, and is defined by it as “the largest in its history”.
A solution for migrant workers
Today, immigrants who want to transfer money to their country of origin are forced to use solutions that involve high fees, and at the same time those that leave them unable to manage their financial lives – not in the country where they work, and certainly not in their homeland. Rewire’s solution provides an answer to these difficulties through a global account that allows managing the day-to-day life of the migrant worker both in the country where he works and in the country of origin. Thanks to the company’s collaborations with banks, immigrants can deposit funds into a digital bank account and use it locally, using a credit card issued by it, or transfer funds to their country of origin. Rewire’s application, which is available in 8 languages, currently allows approximately 600,000 migrant workers in Israel and dozens of European countries to send money to their families and make money transfers at more than 1,000 deposit points at Super Pharm, Postal Bank, and GMT branches.
Now, as mentioned, the companies are announcing the purchase deal, in which Rewire will become a wholly owned company of Remitly, one of the largest companies in the world in the field of digital financial services for immigrants. Rewire employs 132 employees, of which 119 are in Israel and 13 in its offices in the Netherlands and the company emphasizes that all employees will continue to work even after the acquisition. By the way, about a third of the workers in Israel are migrant workers themselves, who provide support to other migrants from China, Thailand, the Philippines, Nigeria, India and more.
Rewire was founded in 2015 by the entrepreneurs Guy Kashtan, the CEO; Adi Ben Dayan, VP R&D; Sa’ar Yahlom, the CTO and Or Ben-Oz and since its establishment it has raised 62 million dollars – including a credit line of 15 million dollars. In a conversation with Gigtime Guy Kashtan, the company’s CEO, says that in the long term the plan is to bring the Rewire brand under the well-known brand of the parent company, while the company will continue to promote the various products for Remitly based on its capabilities, experience and technology.
Over the years, about 62 million dollars have been invested in Rewire. You are now selling for $80 million. In similar sales transactions in the past, there were comments about a “disappointing exit”, or a deal that mainly benefits first investors. How would you describe your feeling after the deal and the path you have taken so far?
Kastan: “We are very satisfied with the sale. We prioritize the employees, the shareholders and the customers. We see companies that are laying off, downsizing and making low recruitments, and in our opinion, in the current period in the market, this is a very big achievement especially because we will be able to recruit more employees, and enable amazing opportunities for our employees. Remitly It is the most suitable company for us, a leader in our industry, our most significant inspiration and very focused on the well-being of its employees.”
Kashtan added that in light of the entry into additional markets and the continued development of new financial services, the company will recruit dozens of employees in Israel during the coming year, and will expand the team located in the office in Amsterdam, which centers its activities in Europe.
Yaniv Avital
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