Former Yahoo CEO joins $20m funding round of Israeli-based fintech startup

Israel-based fintech startup Rewire announced it has raised US$20 million in its series B financing round led by investment platform OurCrowd.

Renegade Partners, Glilot Capital Partners, and former Yahoo CEO Jerry Yang also participated in the round, alongside existing backers such as Viola Fintech, BNP Paribas, Moneta Capital, and other private angel investors.

Rewire founders (from left to right) Adi Ben Dayan, Guy Kashtan, and Saar Yahalom / Photo credit: Rewire

A neobank that serves migrants, Rewire issues electronic money, provides payment services, and engages in money remittance. It also aims to provide affordable financial services such as payment and savings accounts and mortgage loans.

It claims to have over 230,000 users who are originally from China, the Philippines, India, and Thailand.

Funds raised from the financing round will be invested in the development of its product portfolio and services, as well as in partnerships in its users’ countries of origin and the markets in which they currently reside.

“These investment and licenses are major steps toward fulfilling our company’s vision and will be used for the additional expansion of geographies and products,” said Rewire CEO Guy Kashtan.

The company said it processed US$500 million in payments and tripled its customer base in 2020. Rewire added that it will soon hit 500,000 registered users, attributing 40% of them to organic growth.

The fintech firm has partnered with financial institutions such as UkrSibbank in Ukraine and mobile wallet enablers in Nigeria and the Philippines. Other institutions that it has partnered with across Asia include the Philippine-headquartered Metrobank and the Indian private sector bank Yes Bank.