Somalian billionaire, Ismail Ahmed is one of Africa’s financial technology entrepreneurs trying to capture the unbanked percentage through his payment platform Zepz, formerly WorldRemit. He started the company in 2010 with the aim of providing a better way to transfer money from the United Kingdom to his family in Somalia.
The digital cross-border payments platform Zepz powers two leading global payment brands: WorldRemit and Sendwave. This way, the company makes global digital payments fairer, faster, and more flexible. Since its inception, the platform has enabled transfers from 50 to 130 countries, operates in over 5,000 money transfer corridors worldwide, and has about 1,500 workforces globally.
With 12 years of operation under the leadership of the Somalian billionaire Ismail Ahmed, the company has seen its fair share of ups and downs. In 2021 Zepz recorded a $151 million loss despite the 67% revenue growth from $239 million in 2020 to $399 million in 2021.
Zepz’s profit-yielding strategies
Despite the losses incurred in the previous years, Zepz, a leading tech startup, is about to end its 2022 fiscal year with a profit. According to the company’s report, its performance in the first half of the year improved tremendously as a result of the company’s strategy, which included investments in marketing, talent, and technology. The company tailored the strategy toward growth to enhance its remittance business.
The improved six months performance was followed by a cost-cutting strategy previously announced by Breon Corcoran, the former chief executive officer (CEO) of Zepz. The company reduced its workforce by 5%, downsized its London office, froze pay, and cut the marketing budget by $40 million.
Robert Mitchell, the chief financial officer (CFO) of Zepz, in regard to the group’s financial performance, said, “Our 2021 and H1 2022 numbers show swift profitable growth that proves the grit of this organisation and the resilience of its customers as they face increasing inflationary and recessionary pressures.”
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