Somali tycoon Ismail Ahmed’s Zepz raises $267 million to expand in Africa

Timilehin Adejumobi -
Key Points
  • Zepz secures $267-million funding to expand its international payments services, targeting growth in African markets and beyond.
  • Accel leads the funding round, with participation from Leapfrog, TCV, and the IFC, supporting Zepz’s ambitions amid a delayed IPO.
  • Zepz, with more than 5.7 million customers, aims for profitability and growth through acquisitions in the evolving digital remittance landscape.

Zepz, a fast-growing international payments firm, formerly known as WorldRemit led by Somali tycoon Ismail Ahmed, has raised $267 million in its latest funding round involving both existing and new investors, as it looks to expand its operations across Africa and other global regions.

The venture capital firm Accel, along with Leapfrog and TCV, led the latest funding round for Zepz. The International Finance Corporation (IFC), a member of the World Bank Group, also participated, committing up to $20 million. This investment will support Zepz's growth plans.

Market resilience and acquisition potential drive strategy

In light of earlier intentions to pursue an IPO, Zepz has opted to delay its market debut, with Accel partner Harry Nelis indicating that there is no immediate pressure for the company to go public. “There’s no rush for Zepz to go public,” Nelis noted, echoing previous reports from Bloomberg regarding the postponed IPO.

“Fintech funding is on the rise again, but mainly for well-established players,” Nelis added. The remittance market remains ripe for consolidation, presenting opportunities for Zepz to grow through acquisitions as more consumers shift from traditional cash transfers to digital services. Zepz is well-positioned to capitalize on this transition, as digital adoption continues to accelerate globally.

Mark Lenhard, CEO of Zepz, highlighted the resilience of the remittance market, noting that during crises — be it the COVID-19 pandemic or geopolitical unrest—remittances tend to surge as people prioritize sending money to support families and communities. “We saw it during COVID, we see it when there's geopolitical unrest, and we’ll see it again in times of crisis,” Lenhard said.

Founded in 2010 by Ahmed, Zepz has become one of the leading digital cross-border payment platforms, with two primary brands under its umbrella: WorldRemit and Sendwave. Sendwave, acquired in 2021, operates in key markets including the United States, Canada, the UK, and the EU, further bolstering Zepz’s global footprint.

Zepz was last valued at $5 billion in 2021, following the Sendwave acquisition and subsequent rebranding. The company made a strategic decision to reduce its workforce by over 25 percent in May 2023, signaling a commitment to achieving profitability. After reporting a $151 million loss in 2021, Zepz set its sights on profitability by the end of 2022, marking a pivotal moment in stabilizing its remittance operations. 

In 2022, the company refuted claims of internal issues hindering its IPO, labeling them as “speculative and factually inaccurate.” Zepz also reported a remarkable increase in its global customer base, which now surpasses 5.7 million, driven by technological innovation and the growing acceptance of digital remittance solutions that fuel its upward growth trajectory.