UK fintech Railsr gets back on track with $24m funding
UK-based fintech Embedded Finance, which is trading as Railsr and was sold to a consortium of VC firms in March, has secured $24 million in fresh funding.
Railsr raises $24 million
The capital came from existing investors including D Squared Capital and Moneta Venture Capital (which are also part of the consortium), and will be used by the company in its rebuilding and growth plans.
In a statement, the company states that it has made “positive progress in addressing regulatory concerns in the UK over the last six months” and is looking to achieve “complete remediation” by early 2024.
Additionally, Embedded Finance has also established an entity in France, following a decision to not acquire Railsbank’s regulated entity PayrNet in Lithuania – after the Bank of Lithuania revoked its electronic money institution (EMI) licence following multiple law violations.
The company says it has started the application process for an EMI licence in France, which it plans to “passport across Europe, either directly or through a network of partners”.
Philippe Morel, CEO of Railsr, says the funding was “secured in a much tougher fundraising environment” and allows the firm to grow “sustainably” as the sector faces a “very challenging” period.
“We were one of the first to face these challenges, but we are now also well positioned to be one of the first to come through this period,” Morel adds.
“We have a proven product and business model, which is operating in a sector with much higher barriers to entry due to a tougher regulatory and fundraising environment.”
