Fintech Giant Rapyd Seeks Funding at $3.5B Valuation: A Dramatic Drop from $9B

Fintech Giant Rapyd Seeks Funding at $3.5B Valuation: A Dramatic Drop from $9B

Rapyd Financial Network is preparing to raise $300 million in a new funding round, which aims to value the global payments platform at $3.5 billion. This valuation represents a significant decline from its previous worth of approximately $9 billion in 2021, as reported by Bloomberg.

Overview of Rapyd Financial Network

Based in London, Rapyd offers a comprehensive suite of financial services that includes:

  • Payments processing
  • Mobile wallets
  • Money transfers
  • Card issuing
  • Fraud protection

These services are accessible to third parties through an API, making it a versatile solution for businesses around the globe.

Funding Goals and Acquisitions

With the upcoming funding, Rapyd plans to acquire a payment processing startup. The company has been actively engaging in acquisitions, having recently added four companies to its portfolio, including:

  • Valitor: An Iceland-based payments startup acquired for $100 million in 2022.
  • PayU: Acquired units for $610 million in 2023.

Previous Financing Rounds

In 2023, Rapyd’s CEO and co-founder Arik Shtilman mentioned to TechCrunch that the company was in the final stages of closing a $700 million financing round. However, the company has not publicly disclosed the details, leaving questions about whether the funding was finalized and at what valuation.

Market Trends and Competition

This fundraising effort comes in a challenging environment for fintech companies. For instance, Rapyd’s competitor, Stripe, had to raise capital at a valuation of $50 billion, a drop from its peak of $95 billion. If Rapyd succeeds in raising funds at a lower valuation, it would not be alone; many startups are facing similar situations, known as down rounds.

These down rounds are a result of inflated valuations during the VC funding boom of 2020 and 2021. According to PitchBook, flat or down rounds have reached a decade high, representing 27% of all deals in the first nine months of 2024.

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Investor Backing

Rapyd’s investors include prominent firms such as:

  • Coatue
  • Oak HC/FT
  • Target Global
  • Tiger Global Management

As of now, Rapyd has not responded to inquiries for further comments.

For more insights into the fintech industry, visit our Fintech News section.

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