Zepz teams up with dLocal after $267 million raise to boost cross-border payments

Omokolade Ajayi -
Key Points
  • Zepz, formerly WorldRemit, partners with dLocal to improve cross-border payments in emerging markets after securing $267 million in funding.
  • Collaboration aims to address financial barriers in underserved regions of Africa, Asia, and Latin America, enhancing cross-border payment solutions.
  • Zepz plans global expansion with $267 million in funding, focusing on reducing transfer costs and increasing access to digital financial services.

Zepz, a fast-growing international payments firm, formerly known as WorldRemit led by Somali tycoon Ismail Ahmed, has partnered with Uruguayan fintech dLocal to improve cross-border payments in emerging markets. This follows Zepz’s $267 million funding round to expand services in areas with limited banking access and high transfer costs.

The collaboration seeks to address barriers in Africa, Asia, and Latin America, where millions remain underserved by traditional financial systems. Despite the rise of digital wallets and instant payments, interoperability challenges continue to limit access to affordable, efficient cross-border payment solutions.

Expanding global reach and reducing transfer costs

Through this partnership, dLocal’s global payment infrastructure will help Zepz’s brands—WorldRemit and Sendwave—streamline their cross-border transfer services, providing users with faster and more affordable money transfers. The integration is expected to enhance Zepz’s ability to serve new markets and improve the efficiency of cash flow management, allowing for a seamless transfer experience for users.

Amish Chande, Zepz’s Global Head of Business Development & FX, emphasized the importance of reducing transfer costs in facilitating remittances for emerging markets. “Affordable transfer rates are a significant advantage when it comes to enabling money transfers in emerging markets. We look forward to growing a deep partnership with dLocal,” Chande said.

dLocal, known for its expertise in facilitating payments for businesses in emerging markets, will support Zepz in expanding its reach by optimizing offerings in both existing and new markets. “We look forward to the prospect of this partnership and achieving their goals of expansion,” said Agustin Botta, Head of EMEA at dLocal.

Funding and strategic growth plans

Zepz, founded in 2010 by Somali tycoon Ismail Ahmed, reached a $5 billion valuation after acquiring Sendwave in 2021. Despite this growth, the company posted a $151 million loss that year. In response, Zepz cut its workforce by 25 percent in May 2023 to streamline operations.

With $267 million raised in its latest funding round, Zepz plans to expand across Africa and globally. The round was led by Accel, Leapfrog, and TCV, with the International Finance Corporation (IFC) contributing up to $20 million.

Though initially considering an IPO, Zepz has postponed the move, citing no immediate need to go public. Accel partner Harry Nelis noted that “Fintech funding is on the rise again, but mainly for well-established players,” giving Zepz time to strengthen its position.

The shift from cash transfers to digital solutions in the remittance market offers Zepz a significant opportunity to lead in cross-border payments and provide affordable financial services to underserved regions.