Rapyd Raises $ 300 Million On $ 8.75 Billion Valuation As FinTech-As-A-Service Continues To Thrive – TechCrunch

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Neobanks, other financial startups and the basic concept of ‘finance anywhere’ are seeing huge gains right now, and today one of the key companies building the infrastructure that powers services like these herald a major growth funding round to double the opportunity.

Rapyd – which provides a range of financial services such as payments, mobile wallets, money transfers, card issuance, fraud protection, etc., all through an API that third parties can quickly integrate into their own services – raised $ 300 million, an E Series that TechCrunch understands from reliable sources, values ​​the company at $ 8.75 billion.

The company has grown rapidly over the past year, driven in large part by the global shift to living and doing business online in the wake of the Covid-19 pandemic. Rapyd’s total payment volume is expected to exceed $ 20 billion this year, a four-fold increase from the $ 5 billion volume in 2020. The company has some 12,000 small and medium-sized businesses using its services, and 650 other large corporate clients.

Target Global – the European VC that’s been making big bets on fintech and commerce lately – is leading this cycle, with new backers Fidelity Ventures, Altimeter Capital, Whale Rock Capital, BlackRock and Dragoneer, and previous backers General Catalyst, Latitude, Durable Capital Partners, Tal Capital, Avid Ventures and Spark Capital are also participating. The startup’s former strategic investors have included payments giant Stripe.

Rapyd CEO and co-founder Arik Shtilman said in an interview that the plan would be to use part of the investment for acquisitions and part for R&D.

Rapyd started the merger and acquisition process in earnest this year, Valitor payment acquisition and card issuing company in July for $ 100 million to expand deeper into Europe and launch an investment arm called Rapyd Ventures. Acquisitions will likely continue to deepen in markets where it is

On the R&D side, the company already has some 900 different services covering 100 countries within its API. I have likened Rapyd’s approach in the past to being akin to a “Swiss Army Knife ‘services, and Shtilman says these fall roughly into several distinct categories.

“Ultimately, there are five things on planet Earth for financial services, whether you are a bank or a family store: collecting payments, dispersing money, storing funds, issuing cards and exchange it. From these you can create endless abilities, ”he said. A priority now, he added, will be to focus on expanding its technology related to identity management and fraud to complement what it already does.

“Know your customer [KYC] and the compliance tools will help us attract more customers even faster, ”said Shtilman.

The timing of this last lap is a big problem for Rapyd. For starters, it only happens seven months after Rapyd’s announcement. another $ 300 million round, his Series D (that round actually ended in November, I found out). Notably, this latest round was valued at $ 2.5 billion, and although the company does not disclose its funding, Shtilman told me that revenue has increased 3.5 times since then. A source very close to the company told me that the valuation was, quite simply, the multiple of those two numbers: $ 8.75 billion.

Second, it is important in the context of the larger market and where Rapyd fits into it.

We are currently seeing a huge profusion of companies that are harnessing the potential of what is called integrated finance – financial services that are built and operated by one party and integrated by APIs into the service of another party – to create new products, ranging from neobanks around the world, to e-commerce companies creating checkout services, or to companies only tangentially in commerce now launching products to improve customer engagement or take their first steps in the space.

This meant a lot of competition for Rapyd, with other big players such as Fast, Checkout, Mambu and Railsbank all also raising huge rounds.

In other words, not only is this round a sign of Rapyd’s own growth, but a signal to the market of how it is positioning and doing and doing in what is shaping up to be an interesting and competitive field.

Rapyd – who is now based in Silicon Valley but whose R&D and CEO are based in Tel Aviv – was one of the first players in that space, and Shtilman likes to remember how, when he started the business, there was a lot of skepticism from other members of the financial services community, not only because the idea seemed too difficult to implement, but because they saw financial infrastructure as essentially the gem of most financial services companies.

“When we started in 2016, everyone thought we were crazy because the concept was too big and too broad,” he said. “Then, like mushrooms after the rain, everyone saw it. Everyone now understands that the future of fintech is fintech infrastructure. Like cloud computing.

Indeed, it took a little while, but nowadays most recognize that the basics of these services are, yes, very difficult to build, but basically work the same for everyone, so they can be. built once, then packaged and turned into something you can use cloud services to become products that you can use your resources, time, and strategy to personalize.

Meanwhile, the crown jewels are, in fact, your customers. And therefore, by creating transactional services that complement what you already do as a business, or augment it in a sufficiently interesting and useful way, you end up deepening your engagement with them and their engagement.

The fact that this can apply to almost any online business today means that the opportunities are also vast, one of the reasons investors are so keen to be in this market. (And that goes for more than Rapyd, as it’s big enough not to be an all-win market.)

“Rapyd has built an integrated borderless fintech infrastructure essential to all digital businesses operating globally. Their platform integrates payments, compliance, forex, fraud management, escrow, issuance of virtual accounts and cards, and more. But now, as the world sees increasing traction on global e-commerce, Gig Economy, Fintech solutions and technology platforms, Rapyd must take a new step, ”said Mike Lobanov, Managing Partner of Target Global, in a statement. “There is currently an unprecedented need for a single partner to bridge a wide range of local payment services and merchants, giving them access to the flexible, quick to integrate and scalable solutions they need to thrive. After leading Rapyd’s Series A in 2018, we are convinced that Rapyd can be such a partner and now renew our bet in this round.


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