nav
Business Operations Business Models

How Does WeTransfer Make Money (Business and Revenue Model)

The WeTransfer business model

How Does WeTransfer Make Money?
Here’s what you should know:
  • What is WeTransfer, and how does WeTransfer work?
  • How does WeTransfer make money?
  • Subscription Revenue
  • Advertising Revenue
  • WeTransfer’s Subsidiaries, Acquisitions, and Exits
  • WeTransfer’s profit and revenue
  • What is the WeTransfer business and revenue model?
  • WeTransfer’s funding and valuation

How does WeTransfer make money if it’s free to use? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the WeTransfer business model, their year over year revenue, and how WeTransfer works.

What is WeTransfer, and how does WeTransfer work?

WeTransfer is a file hosting service that allows users to simply send, receive, and store files.

Founded in 2009 by Bastiaan BeerensRinke Visser, and Nalden, WeTransfer now has over 87 million monthly active users across 190 countries.

How WeTransfer works is: To use WeTransfer, users must first create an account.

Once an account is created, they can send up to 2 GB of files for free. But if a user wishes to have additional features that the free version does not have, they can upgrade to one of WeTransfer’s paid subscription plans.

Some of WeTransfer’s competitors include Dropbox, Box, Hightail, Google Drive, and other file hosting services.

WeTransfer App in Apple App Store | WeTransfer Business Model | How Does WeTransfer Make Money? | How Does WeTransfer Work?
Source: Apple App Store | WeTransfer

How does WeTransfer make money?

According to WeTransfer’s about page, WeTransfer has over 87 million monthly active users across 190 countries. So how does WeTransfer make money off of all these active users?

Below is a breakdown of how much money WeTransfer makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how WeTransfer makes money (in 2022):

WeTransfer has a revenue model that makes money in two (2) ways – subscription and advertising revenue.

#1. Subscription Revenue

While WeTransfer offers a freemium version to its users, WeTransfer makes its money through the users who upgrade to paid subscription accounts.

As noted above, WeTransfer has over 87 million monthly active users; although how many of those are paying users is unknown.

WeTransfer offers two (2) tiers for its paid subscription service; Pro and Premium. Both of which offer their own set of perks and added features that the freemium version does not have such as no size limit on transfers, storage (1+ TB), and more. You can see the simplified price breakdown below or go here to take a look in detail.

WeTransfer Pricing:

  • $12 to $23 per month (per user) depending on the plan
WeTransfer Pricing | WeTransfer Business Model | How Does WeTransfer Make Money? | How Does WeTransfer Work?
Source: WeTransfer

Note: WeTransfer has over 87 million monthly active users; although how many of those are paying users is unknown.

#2. Advertising Revenue

WeTransfer also makes money through advertising on its homepage.

While WeTransfer does not make public how much advertising costs or how many businesses advertise with them. What we can see is, based on the ad campaigns WeTransfer runs on their homepage is that they work with many big clients such as Adobe, CHANEL, Spotify, Mailchimp, Microsoft, and more. Which you can see an example of below.

WeTransfer Advertising Pricing | WeTransfer Business Model | How Does WeTransfer Make Money? | How Does WeTransfer Work?
Source: WeTransfer

Note: According to WeTransfer, the company donates 30% of its advertising space to supporting artists they admire and to causes they care about.

WeTransfer’s Subsidiaries, Acquisitions, and Exits

To date, WeTransfer BV has made a total of 2 acquisitions.

Mergers and acquisitions business model
Source: Crunchbase | WeTransfer

WeTransfer’s profit and revenue

WeTransfer’s last reported revenue was for the Fiscal Year of 2020, which was $70.32 million in revenue.

Note: Because WeTransfer BV is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the WeTransfer business and revenue model?

WeTransfer makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Subscription business model
  • Advertising based business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) business model

WeTransfer’s funding and valuation

According to WeTransfer’s Crunchbase profile, WeTransfer has raised $63.8 million over 2 rounds and has a valuation of $714 to $813 million, according to multiple sources, as of April 2022.