Embedded Finance (trading as Railsr) is pleased to announce that it has secured funding of $24M from existing investors including D Squared Capital and Moneta Venture Capital, reflecting their continuing confidence in the company’s growth potential and strategic vision.
Dan Adler, Managing Director of D Squared Capital, said:
“We continue to strongly back Embedded Finance as we continue to believe in the fundamentals of the business. Embedded Finance is a market leader in the UK and presents significant growth potential in Europe. We are confident about the future of the business, with its highly experienced executive team, leading technology and robust strategy.”
The Company has made positive progress in addressing regulatory concerns in the UK over the last six months and is targeting a complete remediation by early next year.
Also, Embedded Finance has established an entity in France. It did not acquire Railsbank’s regulated entity in Lithuania and has instead initiated the application process for an Electronic Money Institution (EMI) licence in France, which it plans to passport across Europe, either directly or through a network of Partners.
This positive momentum follows the recent appointment of a new executive team with significant management and operational improvement experience in financial services. It is led by Philippe Morel, former CEO of SETL and Global Head of Boston Consulting Group’s Capital Markets Practice.
Philippe Morel, CEO, said:
“With this substantial new investment secured in a much tougher fundraising environment, we are very well placed to grow sustainably. 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. As a UK pioneer, we were one of the first to face these challenges, but we are now also well positioned to be one of the first to come through this period. We have a proven product and business model, which is operating in a sector with much higher barriers to entry due to a tougher regulatory and fundraising environment. We are now best placed to be one of the small group of winners.”
Rick Haythornthwaite, Chairman of Embedded Finance, said:
“This new funding shows that we are bouncing back. We are now on the front foot, rebuilding momentum quickly, and our strategy gives the company a clear path to return to growth. The Company is a core part of the ecosystem for other fintechs and the sector is one of the UK’s key growth areas. It is set to play an important part in ensuring the UK remains a leading fintech hub.”