Rapyd, the fintech as a service company that is into payments, wallets, money transfers, and other services, has announced that it has raised $300 million in its Series E funding which now values the company at $8.75 billion.
Such financial services firms are in high demand over the last year or so as investors realize that this field is going to grow exponentially in the coming years and so they are ready to pour in money to get themselves a place within this ecosystem so that they can reap the benefits when the time comes. The investment round was led by Target Global and included many funds like Whole Rock Capital, Blackrock Capital, and other investors as well.
“Rapyd has built a borderless embedded fintech infrastructure critical to all digital businesses that operate globally. Their platform incorporates payments, compliance, FX, fraud management, escrow, virtual account and card issuing, and more. But now, as the world sees growing traction across global eCommerce, Gig Economy, Fintech Solutions and Technology platforms, Rapyd must take the next step,” said Mike Lobanov, general partner at Target Global, in a statement. “There is currently an unprecedented need for a single partner serving as a bridge between a vast array of local payment services and merchants, providing them access to the flexible, fast-to-integrate, and scalable solutions they need to thrive. Having led Rapyd’s Series A in 2018, we are confident that Rapyd can be such a partner, and are now renewing our bet in this round.”
It is reported that the company would be using these funds not only to improve the platform and add more features and upgrades but would also be looking to acquisitions in the coming months as well. The company has also been looking to expand into other regions with its reach extending as far as Thailand in Asia where it had launched its payment gateway last year. It is also only a month back that the company had acquired the payment processor from Iceland, Valitor, in a deal that was worth $100 million.
The fintech company has been facing a lot of competition from similar companies like Railsbank and so many of the fintech companies need to seek massive investment so that they can quickly scale up their operations and expand into more new regions to fight the competition. Acquisitions of companies in new regions also play a major role in the growth and that costs a lot of money as well which is why we are seeing many large ticket investments in this space as the companies jostle for space.