SAN FRANCISCO, Calif. - October 1, 2003 - Xoom Corporation, an online-to-offline international instant money transfer service company, today announced the closing of a Series A round of financing, of over $800,000.
The new funds will be applied to continuing the development of the company's technology, expanding international market penetration, and accelerating customer acquisition. Xoom will be launching its service to India later this month.
Peter Thiel, former chairman and CEO of PayPal, was the lead investor in this round. He is currently the managing partner at Clarium Capital Management. As a result of the funding, Mr. Thiel has joined the board of directors, which currently includes Keith Rabois, former executive vice president at PayPal.
"I'm extremely excited to join this promising company," said Peter Thiel, "Xoom has the seasoned team and technology platform in place to achieve true success in the global remittance market."
"Worldwide, the remittance market generates annually US$150 billion in transactions, representing a US$13 billion revenue opportunity for payment services providers. With providers experiencing profit margins as high as 30%, the gate is clearly wide open to new entrants betting on new technologies, services, and better pricing for the immigrants," said Gwenn Bézard, Senior Analyst with Celent Communications.
Xoom enables customers to send money instantly through the Internet to overseas recipients. The beneficiaries are able to receive the money offline -- whether by pick up or by delivery of funds. The service is currently available in the Dominican Republic and Jamaica, with further expansion planned in Q4 in countries including India, the Philippines, and China.
Xoom Corporation is an online-to-offline international money transfer service. Xoom offers a secure, fast, and inexpensive means to send money online-to-offline recipients in eight countries, including: Dominican Sri Lanka. All transactions are processed securely through PayPal, an eBay company.