One of the positive outcomes of the Covid-19 pandemic is the acceleration of the trend companies and businesses using online means for their commercial and financial interactions. That has in turn has propelled those companies that enable that online shift of business are also benefitting.
One such big player in the field that provides such services is set to announce a significant round of growth funding – the proceeds of which will be used for expanding the tools and services that it provides to other businesses.
$300 million was raised in a recently held funding round by Rapyd, a firm that provides an API-based “fintech-as-a-service” platform covering payments, banking services, fraud protection and more.
The company will make use of the freshly raised funds to enlarge its team, develop more technologies and make selected acquisitions, said its CEO and co-founder Arik Shtilman in an interview.
The number of business customers currently served by Rapyd is about 5,000 which include online marketplaces – including labor marketplaces and marketplaces for goods, as well as e-commerce companies and other kinds of lenders. The company serves any business that wants to integrate transactions or a new financial service into their wider offerings.
With a gain of 500 new customers each week, Rapyd is seeing its strongest growth yet, Shtilman said.
Shtilman confirmed that the money raised in the funding round was at $2.5 billion post-money valuation.
The round is a Series D and is being led by prolific growth-round VC Coatue, with Spark Capital, Avid Ventures, FJ Labs and Latitude which are all new backers. It also included General Catalyst, Oak HC/FT, Tiger Global, Target Global, Durable Capital, Tal Capital and Entrée Capital who were previous investors in the company. Other past investors, notably, include another major player in the world of API-based financial services, Stripe.
Some of the most mandatory and most used services that have seen a huge surge of demand in the last year include those offering financial services – particularly those that provide services that enable companies to carry out transactions online on PCs or phones or other hand held devices.
However some analysts term this as an “opportunistic” raise because the money was being offered to Rapyd at good terms.
“We didn’t plan to raise money when we raised this round, but when the pandemic came in our business started to boom,” Shtilman said. “We were approached by existing investors to scale beyond our original business plans after we completed our 2021 growth plans in three months in 2020. So we thought the timing was probably right for world domination.”
(Adapted from TechCrunch.com)