With a fresh round of funding, fintech startup Rewire eyes partnerships
Published 15 March 2021
Armed with a fresh round of funding, fintech startup Rewire is planning to enhance its product portfolio, services and strategic partnerships.
Rewire develops cross-border online banking services tailored for the needs of expatriate workers worldwide, for themselves and their families.
In March, the fintech venture announced a Series B funding round of $20 million and a significant line of credit from a leading bank. The round, led by OurCrowd, included new key investors Renegade Partners, Glilot Capital Partners (through its early growth fund Glilot+) and Jerry Yang, former Yahoo CEO and director at Alibaba, through AME Cloud Ventures.
They were joined by current investors including Viola Fintech, BNP Paribas through their venture capital fund Opera Tech Ventures, Moneta Capital, and private angel investors. Rewire was founded by entrepreneurs Guy Kashtan (CEO), Adi Ben Dayan (VP R&D), Saar Yahalom (CTO) and Or Benoz.
The neobank recently secured its EU Electronic Money Institution license (EMI), granted by the Dutch Central Bank, which allows the fintech startup to issue electronic money, provide payment services, and provide money remittance services. Rewire was also granted an expanded Israeli Financial Asset Service Provider. Acquiring these licenses is another major step for the fintech startup in its mission to provide secure and accessible financial services for migrant workers worldwide.
Adding more services
To boost its cross-border solution, Rewire plans to enrich its platform with new value-added services such as bill payments and insurance, in addition to credit and loan services, investments, and savings. Adding these to its existing remittance services, payment account, and debit card, Rewire is able to make its first-rate financial services more accessible to migrants and, thus, include them in the financial systems.
“I was most impressed with Rewire’s understanding of its customers and the unique pain points of migrants around the world. As an investor, it’s crucial to know that alongside a solid business plan there’s a wider view of social impact. Rewire proves to have both. I look forward to seeing Rewire’s meaningful impact in shaping the future of cross-border banking as this young startup takes on the noble cause of financial inclusion,” Jerry Yang said.
Rewire CEO, Guy Kashtan said: “At our core, we aim to create financial inclusion. Everything that we do at Rewire is aimed to help migrants to build a more financially secure future for themselves and their families. To do so, we aim to provide services that go beyond traditional banking services such as insurance payments in the migrant’s home country and savings accounts. This investment and licenses are major steps towards fulfilling our company’s vision and will be used for additional expansion of geographies and products.”
OurCrowd CEO, Jon Medved said: “We have been strong supporters of Rewire since inception, investing in the seed round and leading this current round. It is a real pleasure to be proven right about our initial investment thesis, especially when this company is not only producing great results and growing at a very rapid rate, but also helping so many people achieve financial inclusion and get absolutely necessary banking services from a great platform like Rewire.”
With this new round of investment, managed internally by Alex Bakir (GM Europe) and Nir Mlynarsky (CFO), Rewire is now able to develop further and march towards fulfilling its vision.
Rewire saw success in 2020 despite the COVID-19 pandemic. With $500 million processed through its systems, the company has tripled its customer base in 2020 and will soon reach 0.5 million registered users, with 40 per cent attributed to organic growth. Rewire has penetrated new markets in Europe and the UK and introduced new cross-border bill payments.
Rewire established partnerships with prominent financial institutions in multiple countries such as UkrSibbank in Ukraine and mobile wallet enablers in Nigeria and the Philippines. Other partners of note across Asia include the likes of Philippine headquartered Metrobank and Indian private sector bank Yes Bank.
Serving dozens of nationalities, Rewire offers its cross-border solution in 8 different languages and a localized app. In June 2020, Rewire gained global recognition as a fintech leader at the Samsung powered Extreme Tech Challenge (XTC) 2020 competition.
Glilot Managing Partner, Lior Litwak said: “Israel continues to grow companies out to change the world and Rewire is undoubtedly one of them. We are excited and proud to join Rewire’s journey to fulfill their social and business vision, which seeks to create equal financial opportunities for expats around the world.”
Neobanks are turning out to be hot buys for conventional banks, which are struggling to replicate the digital services offered by their new competitors. In December, National Australia Bank (NAB) bought out Australian neobank 86 400 for $151.4 million, according to ZDNet.