Railsbank raises $37m to power global 'embedded finance' plans

By Daniel Lanyon on Thursday 12 November 2020

Digital Banking

The round was co-led by MiddleGame Ventures and Ventura Capita with Anthos Capital, Global Brains, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan and Firestartr also participating.

Railsbank raises $37m to power global 'embedded finance' plans
Image source: Nigel Verdon, CEO of Railsbank

 Banking-as-a-Service (BaaS) platform Railsbank has raised $37m in a new funding round. 

The new cash will enable Railsbank, which was founded in 2016 by Nigel Verdon and Clive Mitchell, to continue its plans for global expansion including the launch of ‘Credit Cards as a Service’ in the USA and continued expansion in South East Asia, the UK and Europe. 

Railsbank is part of the growing fintech trend of B2B firms offering ‘embedded finance’ to financial and non-financial firms alike.  It wants helps start-ups and established brands like Uber to prototype, launch and scale financial products within their own customer experience. Verdon says the firm's platform allows any fungible product, “such as money, digital assets, kilowatt-hours, gas units, carbon credits, reward points, telco minutes, to be spent as money.” 

The round was led by existing investors MiddleGame Ventures and Ventura Capital with Anthos Capital, Global Brains, Clocktower Technology Ventures, Moneta VC, Mitsui Fudosan and Firestartr also participating. 

Railsbank acquired some of Wirecard’s UK assets over the summer following its collapse. It has also seen investment from payments giant Visa. 

Emily White, President of Anthos Capital who also sits on the board of Lululemon and is a former Snapchat COO and Instagram COO, said: “Railsbank is revolutionising access to financial products by enabling non-bank companies to deliver innovative solutions to their customers. We’re thrilled to partner with an exceptional team and support their global expansion.” 

The latest round adds to the previous Series A funding round of $10m in September 2019.

Railsbank is headquartered in London and has offices in Santa Monica, Singapore, Vilnius, Munich, Newcastle, the Philippines, Malaysia, Vietnam and Sri Lanka. 

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