WeTransfer was able to secure $25M funds from their willing investors, Highland Capital Partners. The Dutch based internet company is planning to use the recently acquired funds in order to conquer the U.S. Market.
WeTransfer is a cloud based web and mobile service which has 25 million monthly active users that send over 70 million files a month. They are competing against Dropbox, Box, Hightail, BitTorrent Sync and other file-sharing services that allows users to share and transfer their documents, media and files online. The Dutch company has been considered as "consistently profitable" since 2013 and they have just recently doubled their annual revenue last year.
WeTransfer CEO Bas Beerans said that "Funding isn't something we proactively looked for, but having been approached by a significant number of investors from across the globe in the past two years, we realised there were bigger opportunities to grow as a service and a brand," but he added that "When HCPE approached us, we had an instant connection. In addition to supporting us with funding, HCPE will offer advice and expertise to help us achieve our goal to build on WeTransfer's brand and offering."
Tony Zappalà, a partner of Highland Capital Partners Europe, said that they are pleased to have invested in WeTransfer, explaining that "We are delighted to have invested in WeTransfer. The team has bootstrapped an amazing company, built around a product that creative professionals and consumers worldwide love to use." He also added that "We look forward to working with them to continue making WeTransfer a fun, productive and intuitive experience, which wows its users every time."
WeTransfer has been generating their income in two main streams which are advertising and selling their premium product. 40% of their revenue comes from advertising alongside its free service allowing a user to send up to 2GB or 10GB via mobile apps. The other 60% comes from selling its premium product service which costs €10 ($11) per month. This will let the user to send up to 10GB online, have a 50GB storage, secure their account with a password and customize their URLs.
WeTransfer has already initiated their first step in conquering the U.S. Market when they sponsored the opening party for the Grammys this year. Hopefully it's a step in the right direction in their aggressive marketing strategy plan.
Join the Conversation