Who Owns wise.com?

wise.com is owned by Wise Plc, a publicly traded company listed on the London Stock Exchange under the ticker symbol WISE. This means that its ownership is distributed among its shareholders, including institutional investors, mutual funds, and individual investors who have purchased shares in the company. It’s not owned by a single individual or a private entity, but rather by its numerous shareholders, typical of a large public corporation.

Founding and Early Ownership

Wise was founded in 2011 by two Estonian entrepreneurs, Kristo Käärmann and Taavet Hinrikus. They started the company out of their own frustration with high fees and unfavorable exchange rates when transferring money internationally. Initially, they were the primary owners along with early employees and angel investors who provided seed funding.

• Founders: Kristo Käärmann and Taavet Hinrikus are the co-founders. Kristo Käärmann currently serves as the CEO, while Taavet Hinrikus transitioned from CEO to Chairman and then stepped down from the board in 2021, remaining as a significant shareholder.
• Initial Funding: The company initially raised capital from angel investors and venture capital firms who saw the potential in disrupting the traditional remittance market.
• Venture Capital Backing: Over the years, Wise attracted significant investment from prominent venture capital firms such as Valar Ventures (Peter Thiel’s fund), Seedcamp, IA Ventures, and Andreessen Horowitz, among others. These firms acquired significant equity stakes in the company during its growth phases.
• Employee Stock Options: A common practice for tech startups, employees were also granted stock options, giving them a share in the company’s success and further diversifying early ownership.
• Private Rounds: Before its public listing, Wise went through multiple private funding rounds, accumulating a diverse group of private investors and funds.

Transition to Public Company (IPO)

A significant shift in Wise’s ownership structure occurred in July 2021 when it went public on the London Stock Exchange through a direct listing.

This move opened up ownership to a much broader base of public investors.

A direct listing means existing shares are sold without issuing new ones, unlike a traditional IPO.

• Direct Listing on LSE: Wise chose a direct listing over a traditional IPO, which allowed existing shareholders (founders, employees, early investors) to sell their shares directly to public investors without raising new capital through underwriting banks.
• Ticker Symbol WISE: The company trades under the ticker symbol WISE on the main market of the London Stock Exchange.
• Public Shareholders: Post-listing, millions of shares became available for purchase by institutional investors (like pension funds, mutual funds, hedge funds) and individual retail investors globally.
• Founder’s Continued Influence: While no longer majority owners, the founders and early employees typically retain significant stakes and influence in publicly traded companies, especially in the early years after listing.
• Analyst Scrutiny: As a publicly traded company, Wise is subject to regular financial reporting, analyst coverage, and investor scrutiny, which demands high levels of transparency and good governance.

Major Shareholders and Board Composition

While ownership is diffused among shareholders, institutional investors often hold significant blocks of shares. Frequently Asked Questions (FAQ)

The company’s board of directors is responsible for governance and strategic oversight, representing the interests of all shareholders.

• Institutional Investors: Large investment firms, mutual funds, and pension funds are typically the biggest shareholders in publicly traded companies like Wise, holding significant percentages of the outstanding shares.
• Retail Investors: Individual investors also hold a portion of the shares, allowing anyone with a brokerage account to own a piece of Wise.
• Board of Directors: The board comprises executive directors (like the CEO) and independent non-executive directors, who provide oversight and guidance. The board’s composition and changes are publicly disclosed.
• Founders’ Continuing Role: Kristo Käärmann remains deeply involved as CEO, driving the company’s strategic direction. Taavet Hinrikus, while stepping down from the board, likely remains a substantial individual shareholder.
• Shareholder Meetings: Public companies hold annual general meetings (AGMs) where shareholders can vote on key company matters and elect board members, exercising their ownership rights.

Decentralized Ownership Model

The public listing fundamentally changed Wise’s ownership from a concentrated group of founders and venture capitalists to a widely distributed base of shareholders.

This decentralized ownership is typical for mature, large corporations.

• No Single Majority Owner: No single entity or individual owns more than 50% of Wise Plc shares, meaning control is distributed among the collective shareholders.
• Transparent Reporting: As a public company, Wise Plc is obligated to regularly report its financial performance and significant ownership changes to regulatory bodies and the public.
• Corporate Governance: The company adheres to strict corporate governance standards set by the London Stock Exchange and other relevant regulatory bodies, ensuring accountability to its shareholders.
• Investor Relations: Wise maintains an investor relations section on its website, providing financial reports, investor presentations, and news to keep shareholders informed.
• Focus on Long-Term Value: With a diverse shareholder base, the company’s management is incentivized to focus on long-term growth and profitability to deliver value to its investors.