Rainforest, a payment provider purpose-built for software platforms, has announced it has raised an oversubscribed $20m Series A funding round.
The investment was led by Matrix Partners, with additional participation from Accel, Infinity Ventures, BoxGroup, The Fintech Fund, Tech Square Ventures, and Ardent Venture Partners, all of whom were involved in Rainforest’s seed round in 2023. This new capital brings Rainforest’s total funding to $31.75m.
Rainforest specialises in embedding payments into software products, helping vertical software companies increase revenue, enhance engagement, and reduce churn. The company has carved out a niche among software companies processing between $50m and $2bn in annual payments, providing customised risk models, vertical-specific merchant scoring, and precise fraud monitoring.
The fresh funding will be used to advance Rainforest’s core technology and product offerings, expand its platform success team, and accelerate growth through new go-to-market initiatives. Since its seed round, Rainforest has grown its payment volume by 17 times, signing dozens of platforms that represent billions in processing volume across various industries such as trucking, logistics, healthcare, and specialty retail.
In addition to its core offerings, Rainforest has introduced features such as streamlined merchant onboarding, Apple Pay support, 3DS fraud reduction, and optimised interchange passthrough fees. These innovations aim to help software platforms grow payment volumes and reduce fraud, further enhancing their revenue streams.
Rainforest’s founder and CEO, Joshua Silver, highlighted the company’s unique position in the market. “Historically, Stripe excelled at helping startups take their very first payment – but they’ve very publicly shifted their focus to large enterprises, leaving mid-market platforms to choose between a DIY Stripe solution built for early stage startups or cobbled-together solutions from a bevy of upstarts. These mid-market platforms tell us that, prior to Rainforest, it was impossible to find a payment provider that offers a full package of modern technology, platform-friendly commercials, and high-touch support.
“With Rainforest, software companies don’t have to sacrifice or choose between robust technology, excellent support, and attractive contract terms. By providing embedded payments via white glove service that’s risk-adjusted and customized for software platforms, we’re empowering more companies to focus on what they do best: building software that improves economies and experiences for everyone.”
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