CurrencyFair, provider of International Money Transfer services to consumers and businesses worldwide has has announced a major expansion into Asia through the acquisition of Hong Kong based, Convoy Payments Limited (“Convoy Payments”), a subsidiary of Convoy Global Holdings Limited (“Convoy Global”, Stock code: 1019.HK).
This acquisition accelerates CurrencyFair’s entry into the Asian market and opens up access to the US market through Convoy Payments’ existing business. CurrencyFair will launch the Chinese currency renminbi (RMB) on its platform in the next phase.
The acquisition is part of a €20 million investment plan to drive rapid global growth which will also see the creation of 90 new jobs over the next 18 months. The new jobs will be created globally with particular emphasis on product development, customer service, compliance and marketing and global partnership development.
With CurrencyFair having reached profitability earlier this year, this global growth plan will be funded from internal cash flow and with the support of four significant Asian and European investment firms, Hong Kong based Convoy Global, UK based growth investor Octopus Ventures, US & European alternatives investor Harbert European Growth Capital and liquidity provider to European growth companies, Seligman Private Equity Select.
Paul Byrne, CEO and President of CurrencyFair, said: “The investment will enable us to continue taking our vision of a world of fairer financial services to Asia. In addition to being able to provide more Asian currencies to our 100,000 plus customers, we are very excited about the opportunity to bring our products to the world’s fastest growing region, which will account for approximately 33% of global money transfers by 2026.
“We will now be able to provide business payment services for non-Chinese companies seeking to pay their Chinese suppliers as a first step to a broader expansion across the region. Being able to offer RMB gives CurrencyFair access to the inbound Chinese money transfer market, estimated to be worth $61 billion in 2016.”
Michael Yap, Head of Venture Capital, Convoy Global, said: “Convoy Global is pleased to have found a great partner in CurrencyFair to expand our payments offering. The partnership includes the merger of Convoy’s existing payment business with CurrencyFair as well as a direct investment earmarked towards supporting the joint entity’s Asian expansion. We are also excited to become their crucial strategic partner in enhancing their financial solutions to customers globally. Alongside the investment and merger, Convoy and CurrencyFair will build up a larger FinTech platform to enhance online services that Convoy will pave the way to apply for a virtual banking license in line with our digital banking strategy.”
Jo Oliver, Partner at Octopus Ventures, said: “Octopus Ventures is proud to continue to support CurrencyFair’s talented management team’s vision of a world of fairer financial services as they continue their global expansion and reach Asia, including China, with their innovative services.”