Rapyd, which offers fintech-as-a-service via a single API, adds $20M more to its coffers at a $1.2B valuation

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One of the most important traits on this planet of monetary expertise has been an ongoing push in the direction of consolidation, the place bigger fish are snapping up smaller fish (together with a proliferation of fascinating startups) to get improved economies of scale in a enterprise mannequin the place each transaction brings incremental returns. But at present, a startup that has constructed the idea of consolidation into its primary DNA has raised one other spherical of funding to proceed doubling down on its enterprise.

Rapyd — a London-based startup that has constructed an API that lets prospects faucet into a vary of monetary companies spanning funds, checkout, funds assortment, fund disbursements, compliance as a service, overseas change, card issuing and shortly logistics throughout a wide selection of geographies — has picked up an extra $20 million. Rapyd’s valuation with the funding is now at $1.2 billion (up from just below $1 billion in October).

The $20 million comes from new funding agency Durable Capital Partners.

Notably, it was solely in October that Rapyd introduced a $100 million elevate. CEO and co-founder and Arik Shtilman stated that Rapyd has now raised $180 million in whole, with earlier traders within the startup together with Oak HC/FT Tiger Global, Coatue, General Catalyst, Target Global, Stripe and Entrée Capital. (Stripe, itself a fast-growing fintech upstart, stays solely a monetary investor within the firm, Shtilman confirmed.)

Durable is the agency based by Henry Ellenbogen, previously a star investor at T. Rowe Price, in what Rapyd stated was the agency’s first funding. (Note: Durable was additionally introduced earlier as an investor in Convoy’s $400 million spherical, some clear indicators that it’s open for enterprise now.)

With Rapyd solely just lately elevating a spherical, Shtilman stated that the explanation for the — err — fast comply with up was as a result of the corporate is gearing up to make some acquisitions, because it too strikes in on the consolidation pattern by including in more instruments into its “Swiss Army Knife” of companies.

“We’ve started to look at two acquisitions that were bigger than what we originally planned, with prices more in the range of $100 million,” he stated. Up to now, Rapyd has largely constructed its expertise from the bottom up, however this can be about “getting at new business very quickly,” he added. Both offers are in progress now and are doubtless to shut in February / March. One is of a card issuing platform (a la Marqeta), and the opposite is of a firm based mostly in Asia Pacific that’s a vital participant in funds within the area. 

The deal with Asia Pacific each for testing out new companies and acquisitions is partially as a result of this, together with Latin America, have formed up to be essential geographies for the corporate. In the final three months, Rapyd has signed on 20 further large-scale firms, Shtilman stated, with a number of of them based mostly out of, or serving, prospects out of the 2 areas.

In truth, Rapyd doesn’t speak a lot about precise prospects, however they embody e-commerce retailers, gig-economy platforms — together with Uber — monetary establishments, and expertise suppliers. The primary pitch is that monetary companies are advanced, and offering one like funds typically means having to provide others. Building these from scratch if this isn’t your core competency could be time-consuming and dear, and so that’s the place a firm like Rapyd steps in with its API.

This is what attracted its latest investor, too. “Durable Capital Partners LP has a vision to identify and invest in promising early stage growth companies and invest in teams that have bold ideas but can also execute at a world-class level and build much larger companies,” stated Ellenbogen in a assertion. “I believe the Fintech-as-a-Service category has tremendous potential as companies seek to embed financial services as an integral part of the next generation technology stack. I believe Rapyd is very well positioned to drive this trend and I believe Arik’s track record in scaling cloud-based businesses will deliver success in this sector.”

When we final talked with Rapyd in October, we requested Shtilman about whether or not the corporate would ever transfer into logistics as a part of its vary of instruments. After all, when you concentrate on the complexities of procuring, storing and shifting items, it’s clear that logistics is without doubt one of the cornerstones you want to get proper in a web based enterprise.

He stated that this was on the corporate’s roadmap, and now Rapyd is in a pilot in Indonesia — an fascinating check mattress, contemplating that the nation’s is unfold throughout hundreds of islands — the place it has built-in a logistics service and given entry to a single service provider as stage one in every of its closed beta. It’s additionally in discussions with different firms about the way it can incorporate their companies into the Rapyd platform to present additional “logistics as a service” to prospects. He additionally confirmed the Durable has been a assist right here, by making an introduction to Convoy as a part of that wider technique.