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UK fintech Railsr secures $24m in funding

UK fintech Railsr secures $24m in funding

Railsr, the UK-based embedded finance startup, has pulled in $24m in its latest series of fundraising.

The financial injection comes just seven months after the firm was rescued from collapse by an investor consortium.

The rescue deal saw Railsr placed into administration under a new operating name, Embedded Finance, and a senior management reshuffle that saw the appointment of a new CEO, CFO and COO.

Launched in 2016 as Railsbank, the firm was an early mover in the open API banking and embedded finance sectors. It has raised more than $180m in total and reached a peak valuation near $1bn.

However, this valuation had declined to around $250m based on a $50m series C fundraising round completed in October 2022.

The firm was also saw its licence revoked in Lithuania in June 2023 and now intends to pursue an electronic money institution licence in France.

This latest fundraise involves long-time investors D Squared Capital and Moneta Venture Capital. 

“We continue to strongly back Embedded Finance as we continue to believe in the fundamentals of the business," said Dan Adler, managing director of D Squared Capital. 

The fundraising was also welcomed by new Railsr CEO, Philippe Morel. “With this substantial new investment, secured in a much tougher fundraising environment, we are very well placed to grow sustainably.

"It has been a very challenging period for the sector. Many companies grew too fast, failing to adequately develop internal controls, and then had to scale back quickly in a difficult economic environment," added Morel. 

His sentiments were echoed by Railsr chairman: “This new funding shows that we are bouncing back. We are now on the front foot, rebuilding momentum quickly, and our strategy gives the company a clear path to return to growth.

"The company is a core part of the ecosystem for other fintechs and the sector is one of the UK’s key growth areas. It is set to play an important part in ensuring the UK remains a leading fintech hub.”

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