A little over a year since Rapyd achieved its unicorn status, the Mountain View-based FinTech has now raised a $300m Series D financing round to leverage the growing demand for its services.
Rapyd began life as a mobile payments provider when it was founded in 2016. It then moved on to build an e-wallet product enabling customers to withdraw cash from any ATM in any country without having a bank account. This led to the company creating the solution that it known for today.
The company provides what it refers to as a “FinTech as a service” model. What that means is that it embeds FinTech services into applications and makes it easier introduce local payment services using application programming interfaces.
“The demand for online payments has skyrocketed following the restrictions due to the effects of Covid and as a company we are well placed to provide businesses across the globe with the solutions they need and to get them up and running fast,” said Arik Shtilman, co-founder and CEO of Rapyd.
“To kick off 2021 with this substantial round of funding to further invest in our platform is a tremendous vote of confidence both in the growing need for local payment solutions that can be deployed at scale globally, and more specifically in our vision and company.”
Coatue led the raise. Several new investors participated in the financing, including Spark Capital, Avid Ventures, FJ Labs and Latitude along with further investment from current investors General Catalyst, Oak FT, Tiger Global, Target Global, Durable Capital, Tal Capital and Entrée Capital.
“The payment landscape varies dramatically across countries,” said Kris Fredrickson, managing partner at Coatue. “A company doing business globally might need to accept hundreds of local payment methods. Rapyd’s API, which abstracts away this complexity, is currently powering what we think are many of the world’s most exciting companies. We are honoured to partner with Arik and team for the next phase of the Rapyd journey.”
The new financing will be used to double the engineering and product teams, as well as expand Rapyd’s platform’s self-service features to empower businesses globally to onboard and to rapidly use Rapyd’s financial capabilities.
Rapyd achieved its unicorn status in December 2019 on the back of it raising $20m on top of the $100m it had already raised in its Series C round. That raise pushed its valuation past the $1.2bn valuation mark.