First High-tech IPO for 2013 - Xoom
Xoom, founded by Kevin Hartz, raised $100 million in an IPO on Friday and its stock jumped more than 40 percent in its trading debut.
Xoom is a pioneer and leader in the online consumer-to-consumer international money transfer industry. Customers use Xoom to send money to family and friends in 30 countries. Since January 1, 2007, Xoom customers sent $5.8 billion, including $1.7 billion in 2011 and $2.3 billion in the nine months ended September 30, 2012.
The market for global money transfer is large and growing. According to the World Bank’s Migration and Development Briefs, the worldwide remittance market grew at a 12% CAGR from $234 billion in 2004 to $513 billion in 2011. This market is expected to continue to grow to $685 billion by 2015, a 7% CAGR. The growth trend in this market has primarily been driven by increasing globalization of economies with cross-border movement of people and employees. Over 200 million people live outside their country of birth, with Asia and Latin America having the largest migrant pools.
According to the World Bank Migration & Remittance Factbook 2011, the United States continues to be the top destination for the immigrant population, with over 40 million immigrants living in the United States in 2010. Immigrants accounted for 13% of the U.S. population in 2010, up from 11% in 2000, according to the U.S. Census Bureau. Immigrants continue to send money to their family and friends in their home countries and represent the significant majority of worldwide remittances. Developing countries largely remain the top recipients of global remittances. The top four remittance-receiving countries – India, China, Mexico and the Philippines – collectively received an estimated annual volume of over $184 billion in 2012 according to the World Bank. The United States continues to be the top remittance-sending country with an estimated $129 billion of outbound remittance in 2010 according to the World Bank, of which approximately $82 billion was sent to countries that Xoom serves.
SOURCE: MercuryNews.com, SiliconValley.com, BizJournals.com, SEC.gov