The UK-based embedded finance firm known as Railsr has recently raised a substantial $24 million in a fresh funding round, marking a noteworthy development just three months after appointing a new CEO. Formerly operating under the name Railsbank and now under the umbrella of Embedded Finance, the company has been actively evolving. In response to regulatory challenges in the UK, Railsr has chosen not to acquire Railsbank’s regulated entity in Lithuania. Instead, it’s pursuing an Electronic Money Institution (EMI) license in France, which it plans to use throughout Europe directly or through a network of partners.
The funding infusion was made possible through the contributions of D Squared Capital and Moneta Venture Capital. Dan Adler, the Managing Director of D Squared Capital, expressed unwavering support for Embedded Finance, recognizing its strong market presence in the UK and its significant growth potential across Europe. He underscored the confidence in the company’s future, attributing it to the experienced executive team, advanced technology, and robust strategy it possesses.
The newly appointed CEO, Philippe Morel, acknowledged the formidable challenges the sector has faced, with many companies expanding rapidly and then having to downsize in a challenging economic environment. However, he believes that Railsr, as a pioneering company in the UK, is well-positioned to overcome these challenges as one of the first to emerge successfully. Railsr boasts a tried-and-true product and business model, operating in a sector characterized by high barriers to entry due to a demanding regulatory and fundraising environment. Morel sees Railsr as well-positioned to be among the select few successful players in this environment.
Railsr Chairman Rick Haythornthwaite noted that the fresh injection of funds is indicative of their resurgence. The company is swiftly regaining momentum, and their strategy charts a clear course for a return to growth. Furthermore, Railsr plays a pivotal role in the fintech ecosystem, and the sector holds a crucial position in the UK’s growth as a leading fintech hub.
Source: FinTech