Railsr raises $46m Series C funding round for embedded finance profitability push

Embedded finance fintech Railsr has closed a $46m Series C funding round.

The round was split between $26m of equity and $20m of debt. No valuation for the round was forthcoming from the company, which was founded by Clive Mitchell and Nigel Verdon (pictured), also its CEO, in 2016 and formerly known as Railsbank.

In an email message to AltFi Verdon said the round would help the company reach profitability.

“This is a fairly priced raise in a challenging market,” he said.

“That environment has meant that we are focused on all the things that make a really good business: concentrating on our core product and delivering value for our customers. This funding round will take us to profitability and I am absolutely delighted,” he added.

The equity portion of the ournd was led by Anthos Capital, who led the Railsr Series B in July 2021, and includes other existing investors spanning Europe, North America and Asia: Ventura, Outrun Ventures,CreditEase and Moneta. The debt portion of the round was with Mars Capital, a new investor in the company.  

Railsr, which raised $70m last year, is pursuing a business strategy prioritising its portfolio of more than 300 non-financial customers - such as HelloCash, Sodexo and Payine - seeking to embed financial services into their businesses.  

Verdon believes the market is accelerating towards embedded finance with growing demand for embedded finance experiences, particularly amongst younger age groups.

“We set out to challenge old finance and this is what we will continue to do. Our strategy and success to date has come from the way we prioritise customers, invest in technology, empower teams and execute relentlessly to continue our journey,” Verdon said in a press release announcing the round. 

“Whilst we must take into account the challenging macroeconomic and geopolitical backdrop we operate against today, it remains a good time to be a fintech business growing new embedded finance micro-economies,” he added.