Israeli-founded global fintech-as-a-service provider Rapyd has raised $300 million in a Series E round led by German-based venture capital firm Target Global, the company announced on Tuesday.
Several new investors joined the round, including Fidelity Management and Research, Altimeter Capital, Whale Rock Capital, BlackRock funds, and Dragoneer, along with participation from existing investors: General Catalyst, Latitude, Durable Capital Partners, Tal Capital, Avid Ventures, and Spark Capital.
The funding round puts the company’s valuation at $8.75 billion, reliable sources told US tech website TechCrunch.
Founded in 2016 by Arik Shtilman, Arkady Karpman, and Omer Priel, Rapyd built a platform that embeds fintech services into any application and simplifies the complexity of offering local payment methods through an easy-to-use API. Businesses can accept and send payments without having to build their own infrastructure through the Rapyd Global Payments Network, which supports hundreds of local payment methods including cards, bank transfers, e-wallets, and cash.
The company has raised at least $470 million in total funding, according to Crunchbase, including a $300 million Series funding round in January. The financing comes not long after Rapyd’s acquisition of Valitor, a European payments and card issuing company, for $100 million, and the launch of Rapyd Ventures, the company’s venture arm.
Rapyd will use the new funds to capitalize on emerging opportunities driven by the unprecedented demand for Digital Payments, Embedded Finance, and scalable cloud-based payment infrastructure across all segments and verticals, and will be used to accelerate the company’s growth through a combination of organic growth, acquisitions, and strategic investments.
“Enabling digital payments has become one of the most fundamental business needs across every industry as the past year and a half have irrevocably demonstrated. Being in a position to help companies enhance their ability to serve customers and expand their reach across global markets is both a tremendous responsibility and an extraordinary opportunity. We are grateful to our investors for acknowledging the new needs of our ecosystem and supporting our aspirations,” said Arik Shtilman, co-founder and CEO of Rapyd. “We plan to use the funding to continue to build out our global fintech as a service platform and invest in strengthening our network capabilities worldwide. We will continue to expand our presence across high-growth markets in Europe, Asia-Pacific, the US, and Latin America, where Rapyd’s platform can support businesses looking to grow internationally. We are doubling down on our channel partnerships strategy, strengthening our footprint across major high-growth markets, and exploring additional acquisitions that serve our strategic goals.”
“Rapyd has built a borderless embedded fintech infrastructure critical to all digital businesses that operate globally. Their platform incorporates payments, compliance, FX, fraud management, escrow, virtual account and card issuing, and more. But now, as the world sees growing traction across global eCommerce, Gig Economy, Fintech Solutions and Technology platforms, Rapyd must take the next step. There is currently an unprecedented need for a single partner serving as a bridge between a vast array of local payment services and merchants, providing them access to the flexible, fast-to-integrate, and scalable solutions they need to thrive. Having led Rapyd’s Series A in 2018, we are confident that Rapyd can be such a partner, and are now renewing our bet in this round,” said Mike Lobanov, general partner at Target Global.