Rapyd Financial Network is seeking to elevate $300 million in a brand new funding spherical that might worth the worldwide funds platform at $3.5 billion, a substantial lower from its roughly $9 billion valuation set in 2021, in accordance with Bloomberg.
The London-based firm provides a spread of monetary companies like funds, cell wallets, cash transfers, card issuing, and fraud safety, that are accessible to 3rd events by way of an API.
Rapyd plans to make use of the funding to purchase a fee processing startup. The nine-year-old firm has been on an acquisition streak, lately including 4 corporations, together with Iceland-based funds startup Valitor for $100 million in 2022. It additionally paid $610 million for models of the worldwide funds platform PayU for $610 million in 2023.
In 2023, Rapyd CEO and co-founder Arik Shtilman instructed TechCrunch that the corporate was “in [the] final stages of closing a new financing round of $700 million.” The firm didn’t publicly report the financing spherical, making it unclear whether or not that funding was secured and, in that case, at what valuation.
That yr, Rapyd’s competitor, the funds big Stripe, was compelled to boost capital at a $50 billion valuation, down from its peak worth of $95 billion.
Should Rapyd full this elevate at a decrease valuation from its peak, it will have loads of firm. In addition to Stripe, many startups have raised capital at decrease valuations than their earlier financings, referred to as a down spherical.
This is as a result of valuations had been excessively excessive through the VC funding frenzy of 2020 and 2021. Flat or down rounds hit a decade excessive, making up 27% of all offers within the first 9 months of 2024, in accordance with PitchBook knowledge.
The firm’s backers embrace Coatue, Oak HC/FT, Target Global, and Tiger Global Management. Rapyd didn’t instantly reply to a request for remark.
