Embedded Finance Fintech Railsr Receives $24m Investment

Railsr, a fintech company specializing in embedded finance, is making a comeback after entering administration, according to a recent report. The company has successfully raised $24 million (£19.8 million) in funding, as reported by Sky News yesterday.

In March 2023, Railsr was sold and became the trading name of a new entity called Embedded Finance. This move followed the company’s second round of layoffs in the US and allegations of funding issues, with rumors of a potential flash sale to a Nigerian fintech.

Despite announcing a $46 million Series C funding round in October of the previous year, Railsr faced a significant cash flow problem in the second half of 2022, according to staff members and customers. The company’s struggles were highlighted in a report by AltFi.

Investors D Squared Capital and Moneta Venture Capital have stepped in to support Railsr financially, offering cash in the form of convertible loan notes. The new CEO of Railsr, Philippe Morel, expressed optimism about the company’s future, stating, “With this substantial new investment secured in a much tougher fundraising environment, we are very well placed to grow sustainably.”