“What doesn’t kill you makes you stronger” or “everything doesn’t have a silver lining” are phrases that could easily describe this story perfectly. From working in a company in London to being the only billionaire in your country is something that only one person can do: Kristo Kaarmann.
Some wealth was gained through a fortuitous inheritance and others were built from below and through some bad experience. The Estonian-born man recently became a tycoon thanks to having had a revealing idea for the year 2011, the product of a “stupid mistake.”
Anyway, Kristo Kaarmann, the genius behind wise, the platform that revolutionized the way the world moves its money, has a story that goes beyond a simple financial mistake. From his humble beginnings as an Estonian in London to becoming his home country’s only billionaire, his journey is an inspiration to entrepreneurs around the world.
How Kristo Kaarmann, Estonia’s only billionaire, made his fortune
The story begins with a 28-year-old young man who worked in a British consulting firm. That same young man received a US$13,000 bonus that he decided to transfer from his UK bank to Estonia since interest rates were high.
“I paid a fee of US$20 for the transfer and a week later, I saw that US$650 less had arrived in my account in Estonia,” Kristo said later. “I started to figure out what had happened and realized that had been incredibly stupid. I had foolishly expected my British bank to give me the exchange rate I had seen on news sites like Reuters and Bloomberg. However, the bank used a 5% less favorable exchange rate, which is how banks get their cut,” the Estonian added.
That was why he had the idea of creating an online platform where he could transfer money, removing banks as intermediaries. After that fateful mistake in 2008, Kaarmann and his partner Taavet Hinrikus who worked at Skype, they saw a business that would solve the problem. This is how TransferWise was born in 2011.
TransferWise, now called Wise, is a financial technology company which offers its clients the possibility of transferring money abroad and converting it into the local currency using the average exchange rate, plus a minimum commission of 0.5%. Since then, the company has experienced exponential growth, backed by renowned investors such as Richard Branson and the co-founder of PayPal, Max Levchin.
Despite initial obstacles and skepticism about the reliability of a business founded by two Estonians, Kaarmann and Hinrikus persevered. They obtained the necessary permits and ensured legal compliance before publicly launching the service, which laid the foundation for its subsequent success.
Currently it is a global company with a presence in more than 50 countries and a user base that exceeds 4 million. Its services, which include a multi-currency account and low-cost international transfers, have revolutionized the way people manage their money around the world. Since going public in 2021, Wise has seen exponential growth in its market value, further contributing to Kaarmann’s fortune.
Kristo Kaarmann net worth in 2024
In 2024, Kristo Kaarmann net worth It is estimated at approximately $2.2 billion., occupying position 1496 in the ranking of the richest people in the world made up by Forbes. In this way, Kristo established himself as Estonia’s only billionaire and one of the most prominent names in international business. His bold vision and ability to turn setbacks into opportunities have catapulted him to the top of the financial world, and his legacy continues to inspire future generations of entrepreneurs.
With Wise expanding its reach and diversifying its services, the future looks bright for Kaarmann and its financial empire. His story is a testament that even the simplest mistakes can lead to great achievements, as long as you have the determination and vision to turn them into success.
