Railsr resurfaces with £20m funding round

Embedded finance fintech Railsr is back after entering administration, according to a report.

The company is set to raise $24m (£19.8m), Sky News reported yesterday.

Railsr was sold in March 2023, becoming the trading name of a new entity called  Embedded Finance, after the firm was hit by its second round of layoffs in the US and insiders alleging funding issues and potential flash sale to a Nigerian fintech.

Staff members and customers told AltFi the company faced an acute cash flow issue in the second half of 2022 despite a reported $46m Series C funding round announced last October.

Read More: Trouble at Railsr: New layoffs, insiders allege funding issues and sale to Nigerian fintech

A report from Sky News states that investors D Squared Capital and Moneta Venture Capital are backing the company with cash, in the form of convertible loan notes.

"With this substantial new investment secured in a much tougher fundraising environment, we are very well placed to grow sustainably," Railsr' new CEO Philippe Morel said.