After facing administrative challenges, embedded finance FinTech, Railsr, has made a triumphant return to the industry with £20m in funding.
UK-based firm Railsr is poised to secure a funding of $24m (£19.8m), as revealed by Sky News.
Railsr, which was sold and rebranded as the trading name for a new entity known as Embedded Finance in March 2023, previously encountered multiple challenges. These include two significant rounds of layoffs in the US and rumours about potential financial struggles, which led to whispers of a hasty sale to a Nigerian FinTech.
The freshly acquired funds are aimed at propelling Railsr’s growth in a demanding fundraising climate, ensuring sustainable development for the FinTech firm.
Before its rebranding, Railsr underwent serious financial stress. Informants from within the company and insights from both staff and customers shared with AltFi, alluded to severe cash flow problems during the latter part of 2022. This was especially alarming given a pronounced $46m Series C funding round that had been announced just a month before.
Railsr’ new CEO Philippe Morel commented on the funding, “With this substantial new investment secured in a much tougher fundraising environment, we are very well placed to grow sustainably.”
To provide a snapshot of Railsr’s past financial journey, the company previously celebrated a $46m Series C funding round in October of the previous year.
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