Rapyd Financial Network is actively seeking to raise $300 million in a new funding round, with plans to acquire a payment processing startup. This move comes as the global payments platform experiences a sharp decline in valuation to $3.5 billion, down from an impressive $9 billion in 2021. The company intends to leverage this capital infusion to bolster its acquisition strategy and enhance its service offerings.
Backers of Rapyd include prominent investment firms such as Coatue, Oak HC/FT, Target Global, and Tiger Global Management. CEO and co-founder Arik Shtilman had previously stated in 2023 that the company was "in the final stages of closing a new financing round of $700 million." This funding effort reflects Rapyd's ongoing commitment to expanding its portfolio through strategic acquisitions. Notably, the company has already acquired four businesses recently, including Iceland-based payments startup Valitor for $100 million in 2022 and units of the global payments platform PayU for $610 million in 2023.
Rapyd's strategic direction aligns with broader industry trends. According to PitchBook data, flat or down rounds reached a decade high, constituting 27% of all deals in the first nine months of 2024. Similarly, Rapyd's competitor Stripe faced a significant valuation cut, raising capital at $50 billion, compared to its peak valuation of $95 billion. This context underscores the challenges many fintech companies face as valuations recalibrate from the heights of the venture capital surge witnessed in 2020 and 2021.
Despite these challenges, Rapyd continues to offer a comprehensive suite of financial services, including payments, mobile wallets, money transfers, card issuing, and fraud protection. These services are accessible to third parties through an API, showcasing Rapyd's commitment to providing versatile financial solutions across various regions globally.
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