Former Chief Executive of Citigroup, Vikram Pandit has invested in a London-based financial technology start-up, TransferWise, which is building a high-profile roster of investors. Taking an undisclosed stake in the money transfer group earlier this year, it adds to his growing portfolio of investments in 'fin-tech' start-ups, which include New York-based groups CommonBond and Orchard Platform.
Ousted from Citi in 2012, Pandit invested in a funding round as Andreessen Horowitz, one of the Valley's premier venture capital groups. The particular funding round in question valued the transfer group at $ 1 billion. Taavet Hinrikus, co-founder of TransferWise said, “To have a man of Vikram’s heritage invest in TransferWise is hugely important. Vikram served as CEO of one of the world’s biggest banks for five years and has an understanding of the system that few can match.”
TransferWise is one of a raft of money transfer start-ups, including WorldRemit and Azimo, that are trying to grab a share of the $529 billion in remittances that zip around the world each year, according to estimates from the World Bank. These groups have said that online remittances will be a multibillion dollar opportunity, as internet transfers account for about 5 per cent of the overall remittances market.
