Rapyd Financial Network is aiming to secure $300 million in its latest funding round, which would position the global payments platform’s valuation at $3.5 billion. This marks a significant decline from the almost $9 billion valuation it achieved in 2021, as reported by Bloomberg.
Based in London, Rapyd provides a comprehensive suite of financial services, including payment solutions, mobile wallets, money transfers, card issuance, and fraud detection, all available to third-party businesses through its API.
The funds raised will be utilized to acquire a payment processing startup. Rapyd, which has been operational for nine years, has been actively acquiring other companies, including the recent purchase of Icelandic payments firm Valitor for $100 million in 2022, and a $610 million deal for portions of PayU in 2023.
In a 2023 interview with TechCrunch, Rapyd’s CEO and co-founder, Arik Shtilman, mentioned that the company was “in [the] final stages of closing a new financing round of $700 million.” However, the details regarding whether this financing was completed or at what valuation remain undisclosed.
During the same year, Stripe, Rapyd’s competitor in the payments space, had to raise funds at a valuation of $50 billion, a significant drop from its highest valuation of $95 billion.
If Rapyd successfully completes this new funding round at a valuation lower than its previous peak, it won’t be alone; many startups have recently raised capital at decreased valuations—a phenomenon known as a down round.
This trend is attributed to the inflated valuations seen during the venture capital funding boom of 2020 and 2021. According to PitchBook data, the occurrence of flat or down rounds reached a decade high, accounting for 27% of all transactions in the first nine months of 2024.
Rapyd’s investors include notable firms such as Coatue, Oak HC/FT, Target Global, and Tiger Global Management. The company has not yet responded to a request for comment.
Compiled by Techarena.au.
Fanpage: TechArena.au
Watch more about AI – Artificial Intelligence
