How A Somali Entrepreneur Beat The UN And Built A $670M Remittance Firm.
Ten years ago, Somalia-born Ismail Ahmed blew the whistle on corruption at the U.N. Development Program in Nairobi, and his boss told him he’d never work again in remittances or development.
Today, Ahmed’s London-based remittance firm, WorldRemit Ltd., sends money to 148 countries and has just raised $40 million in a deal led by London investment firm LeapFrog Investments.
The Series C funding round values the fintech firm at more than $670 million,
Bloomberg reported. WorldRemit’s longtime Silicon Valley backers, Accel Partners and Technology Crossover Ventures, invested in the deal.
WorldRemit expects to net $81 million in revenue in 2017 — 46 percent more than 2016, and up from $35.8 million in 2015, Ahmed said. The company is looking at a potential initial public offering in two to three years, he told Bloomberg.
The company is licensed in the U.S. and Ahmed told Bloomberg he expects “the U.S. will grow our revenues as much as 40 percent over the few years.”
“More than half our revenue comes from transactions going to Africa. The U.S. has the largest number of Africans,” Ahmed told
AFKInsider in a 2016 interview.
Long before Ahmed became a compliance advisor to the U.N., he helped African companies comply with money transfers. He attended the University of London Business School, where he studied for an MBA. After 9/11 he was doing research at the University of Sussex. One of the companies he interviewed had been shut down for non-compliance at a time when the remittance business was unregulated.
Ahmed learned it was critical to have compliance systems in place from the beginning in a remittance business.
When he started building the WorldRemit platform, compliance was the major investment in the beginning. The company has been in existence since 2010. “I took money from angels (investors) who let us decide how to build the business. We only took money from venture capitalists and started growing fast once we put that in place. It i
s one of the reasons we started licensing in the U.S. in 2014.”
In March 2014, WorldRemit got $40 million in funding from Accel Partners. In 2015, the 6-year-old company was valued at $500 million in a $100-million Series B funding round led by Technology Crossover Ventures (TCV), with participation from Accel. In February 2016, the company secured a $45 million line of credit from U.S. growth fund TriplePoint Venture Growth and Silicon Valley Bank.
Working as an advisor to the U.N., Ahmed was fired after he blew the whistle on fraud and corruption at the U.N. Development Program in Nairobi. He received threats from within the organization but ultimately won his case at the U.N. Ethics Committee.
“When I decided to blow the whistle I had a better chance of winning the lottery than surviving the U.N.,” Ahmed told
AFKInsider. “It wasn’t expected I would win my case. My boss at the time threatened me and said I’d never be able to work in remittances or development. People respect the U.N. It was a credible threat. I not only won the case but was able to work in remittances.”
WorldRemit has offices around the world including Australia, U.K., Canada, New Zealand and Japan. It started licensing in the U.S. in 2014. The U.S. is one of the most challenging countries to work in, Ahmed said. You have to get a license in each state.
Ernst & Young described Ahmed as an entrepreneur with an impressive story who is disrupting his sector. “Starting from scratch he has overcome adversity, shaken up the market and achieved global impact and success,” said EY event leader Joanna Santinon, according to an
Invest In UK report.
Ahmed spoke to
AFKInsider, a sister site of
Moguldom.com, in 2016 about overcoming adversity, taking on one of the world’s most respected institutions and winning, and how he turned $200,000 from winning his case against the U.N. into a remittance business now valued at $670 million.
We’ve reposted the interview here.
https://moguldom.com/14281/how-a-somali-entrepreneur-beat-the-u-n-and-built-a-670m-remittance-firm/