Rainforest, a Payments-as-a-Service (PaaS) platform, has recently confirmed the successful completion of an $11.75m seed funding round.
The round saw significant involvement from esteemed backers including Accel, who took the lead, as well as support from Infinity Ventures, BoxGroup, The Fintech Fund, Tech Square Ventures, Ardent Venture Partners, and a host of strategic angel investors.
Notably, the funding round also comprised a $3.25m venture debt facility granted by Silicon Valley Bank (SVB), a prominent division of First Citizens Bank.
Delving deeper into Rainforest’s offering, this cutting-edge platform has fashioned an embedded payments solution meticulously crafted for software platforms. The unique selling proposition lies in its ability to offer platforms optimal economic benefits coupled with minimal operational and compliance hassles. Remarkably, Rainforest has pioneered the introduction of contractual merchant portability. Complemented by expert, white glove service, this ensures platforms achieve their overarching objectives of enduring success and widespread adoption.
By 2030, analysts anticipate a drastic shift in the payments landscape, with close to 75% of consumer payments bypassing direct bank processing. With a myriad of software companies lacking the capital to establish in-house payment systems, Rainforest stands out.
Their platform not only simplifies but also empowers these firms to seamlessly embed and reap financial benefits from payments. While many existing payment providers are fine-tuned for direct merchants, Rainforest’s robust platform actively aids software companies in circumnavigating the intricate web of risk management and compliance.
Rainforest founder and CEO Joshua Silver eloquently captures his journey and the essence of Rainforest. He shared, “First as a healthcare software company founder and then as a payments consultant, I personally experienced the challenges and tradeoffs associated with embedded payments. I recruited former colleagues and other all-star payments and SaaS veterans, and together we built Rainforest – the embedded payments platform we always wanted but didn’t exist.”
Expanding on his vision, Silver expressed, “It’s gratifying to have the backing of leading investors who value our differentiated approach, as well as the opportunity to set a new industry standard. It’s equally rewarding to have incredible clients – RoadSync, PayGround, Rose Rocket, Curae, QuoteMachine and many more – who appreciate our robust product, consultative service model, and expertise. Not every software company wants to become a full-fledged fintech, but nearly all want to embed financial services.”
After its inception in early 2022, Rainforest quickly made its mark, securing client commitments surpassing $500m in processing volume, much of which was assured. The company has established a foothold across diverse sectors, from healthcare and non-profit to niche retail and association management.
Leveraging the funds procured, Rainforest aims to channel investments towards the continued refinement of its team and product. The core mission remains: assisting software platforms in enhancing revenue streams and bolstering retention, whilst facilitating seamless payment acceptance and transmission for their clientele.
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