TransferWise, the London based peer to peer international money wire start up business, has formalized an investment agreement with Valar Ventures. Valar Ventures is a fund built by Paypal co-founder Peter Thiel.
TransferWise was launched in 2011 and leading the funding round was Valar Ventures. This is the first time the US fund is investing in Europe with the fund reaching a total of US$6 million.
According to TransferWise co-founder Taavet Hinrikus, having Thiel on board would help the company further accelerate its expansion plans. He said, "This year we're aiming to add a dozen new currencies and launch the site in the new markets including Germany, Spain, France and Italy."
Fellow founder Kristo Kaarmann found that they can exchange British pounds and euros between themselves pegged at the mid-market exchange rate, thus saving on bank fees often imposed per transaction. As of lately, the business has been able to transfer GBP125 million pounds or US$192 million worth of funds from its clients.
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