International payments processor Xoom has raised $20.29 million Series E in a round led by DAG Ventures and joined by previous investors Fidelity Ventures, New Enterprise Associates and Sequoia Capital.
Xoom’s international payments platform allows users to transfer money to overseas accounts; think Western Union without the excessive fees, and you can use funds in your PayPal account for the payment.
I’ve used Xoom in the past, and it’s a great service that steps in when Paypal withdrawals (or in some cases Paypal altogether) isn’t available in the country you’re paying to. The fees are reasonable, varying between 4% for a small payment down to 1.1% for larger payments. The service is also a convenient way to make international wire transfers that compare well in price to most major banks.
The Series E round takes Xoom’s total funding to in excess of $50 million.