We have closed our Series C, a great milestone for us, a company which is recognised as a true pioneer within the embedded finance market.
And the $46m raise comes almost to the day four months ago when we announced to the world we had changed our name to Railsr from Railsbank.
We believe embedded finance is the future and it's great that so many others see it too. Take management consulting firm Bain & Company which just weeks ago declared that the market will exceed $7 trillion in the US by 2026.
"Demand will grow..."
Bain concluded that: “Demand will grow because the “better together” proposition promises to improve customer experiences and financial access, along with providing cost reductions and risk benefits to companies.”
Our Series C is made up of $26m of equity and $20m of debt. Existing shareholder Anthos Capital led the equity portion with Mars Capital, a new investor, providing the debt.
CEO and co-founder Nigel Verdon told the media and stakeholders: “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.”
“We set out to challenge old finance and this is what we will continue to do. Our strategy and success to date has come from the way we prioritise customers, invest in technology, empower teams and execute relentlessly to continue our journey. Whilst we must take into account the challenging macroeconomic and geopolitical backdrop we operate against today, it remains a good time to be a fintech business growing new embedded finance micro-economies.”
“The market is accelerating towards embedded finance. We are seeing a growing demand for embedded finance experiences, particularly amongst younger age groups. 64% of 18-24 year old GB adults would be likely to access financial or banking services from Amazon, for example.”
Meirav Harnoy, co-founder and managing partner of Moneta VC, said she was excited to see what comes next: "It has been a pleasure to see Railsr go from strength to strength as a challenger to old finance and a creator of the embedded finance economy. Railsr's customers, technology and people have impressed me since I led the Series A investment round."
The raise rounds off a very busy time for Railsr, including the appointment of our first Chairman, Rick Haythornthwaite, in August and in May, we welcomed former England rugby international Will Carling to the fold as an advisor. We also promoted our Chief Product Officer (CPO) Stuart Gregory to the position of Chief Operating Officer (COO) and Jane Thorburn to the role of Chief of Staff - both are members of the Railsr ExCo.
So, we are all now set for the next stage in the Railsr journey, one which will see us continue to invest in our platform and the people around it, enabling our customers to offer the very best embedded finance experiences to their own customers. The next chapter is now being written.