London-based Rapyd, the FinTech unicorn, has bagged $20m in a new investment round less than two months after a massive Series C round.
The October round saw the enterprise raise $100m and sparking rumours about it being close to achieving unicorn status.
Now, with the latest round, Rapyd has achieved a valuation of $1.2bn and attracted $180m worth of investment in total.
The company has created an API that enables customers to leverage a range of financial services like fund collection and disbursement, payments and foreign exchange.
So why would the FinTech unicorn need another round of funding so soon after the last one?
Well, it has to do with Rapyd planning to buy two other businesses.
“We’ve started to look at two acquisitions that were bigger than what we originally planned, with prices more in the range of $100m,” Arik Shtilman, CEO and co-founder of Rapyd, told TechCrunch.
The two new deals are expected to close at the end of the first quarter of 2020 and involves a card issuing platform and an Asian payments company.
Durable Capital Partners is the investor behind the new cash injection.
This would mean Rapyd would be tapping into a new strategy, having previously built its technology from the ground up rather than buying it.
“I believe the FinTech-as-a-service category has tremendous potential as companies seek to embed financial services as an integral part of the next generation technology stack,” said Henry Ellenbogen, founder of Durable Capital Partners. “I believe Rapyd is very well positioned to drive this trend and I believe Arik’s track record in scaling cloud-based businesses will deliver success in this sector.”
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