The investment includes $26M equity and $20M debt financing. The equity part was led by Anthos Capital, who led the Railsr Series B in July 2021, and includes existing investors Ventura, Outrun Ventures, CreditEase and Moneta. The debt amount came from a new investor, Mars Capital.
Railsr CEO and co-founder, Nigel Verdon, says, “I am absolutely delighted that less than four months after Railsbank evolved to become Railsr, we have achieved another milestone and closed our Series C, a significant step on our route to profitability.”
What does Railsr offer?
Founded in 2016 by Clive Mitchell and Nigel Verdon, Railsr claims to be an innovator in the global Banking-as-a-Platform (BaaP) sector. Its platform allows marketers, product managers, and developers to prototype, launch, and scale their financial product vision using its open finance platform, financial operations, regulatory licensing, and APIs.
The platform also provides fintechs with a range of wholesale banking services, including IBANs, receiving money, sending money, converting money, direct debit, issuing cards, and managing credit through APIs.
Railsr says it is the first worldwide turnkey platform that goes beyond fintech to let any brand or organisation, such as sports, retail, travel, and ecommerce, employ integrated financial experiences as a strategic tool for customer interactions, relevance, and revenue generation.
Currently, the company has more than 300 business-to-business (B2B) customers and 5.5 million accounts, with current customers including Foris, Paceline, Plum, Wirex, and Wagestream. Its strategic partners include AWS, Salesforce, Visa, Mastercard, and Plaid.
Verdon says, “Our strategy and success to date have come from the way we prioritise customers, invest in technology, empower teams and execute relentlessly to continue our journey.”
Recent growth and developments
In June, Railsr launched Rewards-as-a-Service (RaaS); in July, direct connectivity to SEPA Instant in Europe was implemented; in August, support for Confirmation of Payee in the UK went live; and later this month, Railsr will formally launch Insights-as-a-Service (IaaS). “This additional functionality enhances our existing simple-to-use, turnkey platform which provides banking, wallets, cards and credit products,” adds Nigel Verdon.
The company has also announced several strategic moves to support growth and build expertise in the retail and sports industry, including the appointment of former England rugby captain and current leadership mentor at England rugby union, Will Carling OBE, and former Formula 1 Board Advisor, Jon Hall.
In August, Railsr also appointed Rick Haythornthwaite as its inaugural Chairman of the board.