Railsr eyes growth after $24m fundraise
Embedded finance fintech company Railsr is eyeing growth after completing a $24m (£19.8m) fundraise from existing investors.
According to a report from Sky News, the company will soon announce that it has been backed with a cash investment in the form of convertible loan notes from investors D Squared Capital and Moneta Venture Capital.
Earlier this year, Railsr – formerly known as Railsbank – staved off collapse when its assets were acquired by an investor consortium for an unknown sum.
Its parent company Embedded Finance now plans to regrow the brand with a focus on offering embedded finance solutions such as banking services, credit cards and digital wallets.
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In April, former BCG executive Philippe Morel was named chief executive of the firm.
“With this substantial new investment secured in a much tougher fundraising environment, we are very well placed to grow sustainably,” said Morel.
“It has been a very challenging period for the sector. Many companies grew too fast, failing to adequately develop internal controls, and then had to scale back quickly in a difficult economic environment.”
Morel added that Railsr has a “proven product and business model” and said that the company is well positioned to expand, having already weathered “a tougher regulatory and fundraising environment.”
Railsr has now established an entity in France, where it intends to apply for an electronic money institution licence.
Read more: Railsr appoints all new executive team