Embedded finance platform Railsr has been purchased and re-capitalised by a consortium led by D Squared Capital.
The change of control has been agreed with the Financial Conduct Authority.
Railsr chair of the board Rick Haythornthwaite said, “We are absolutely delighted that Railsr is now able to rebuild momentum and return to growth. It is a business that deserved to be recapitalised. Railsr has a best-in-class technology platform that has already given hundreds of fintech customers competitive advantage.
“A huge number of people across the financial ecosystem believe in Railr’s potential and have worked very hard to make this transaction a reality. We will now get back to basics and manage the business methodically and constructively. We have secured a new chapter for Railsr and are excited about what the future holds.”
Following the close of the deal, Haythornthwaite will remain as chair of the board.
London-based Railsr enables any company to implement embedded finance experiences to improve their customer engagement, reward schemes, data and revenue. Its capabilities include digital wallets, payments, rewards, loyalty points and cards.
Speaking on the deal, D Squared Capital managing director Dan Adler said, “Embedded finance has the potential to spur innovation, shape business models and shift consumer experiences.
“Railsr has the opportunity to maintain its position as the market leader in Europe and capture the ever-burgeoning embedded finance market opportunity. We’re delighted to play a role in this pivotal moment for the company and its customers.”
Late last year, Railsr formed a partnership with Featurespace. As part of the deal, Railsr will gain access to Featurespace’s card and payment fraud prevention and anti-money laundering solutions.
Additionally, Railsr is looking to provide its customers with access to Featurespace Risk Hub to help them manage their own analytics.
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