London-based global embedded finance platform Railsbank enables fintechs, supermarkets, telcos, and consumer brands all over the world to build new financial offerings. In a recent development, the company picked up $70 million (nearly £50.5 million) in funding.
The investment round was led by Anthos Capital and attracted a range of investors including Central Capital (VC arm of Indonesia’s largest privately held bank), Cohen and Company (the founder of Bancorp), and Chris Adelsbach’s new fund Outrun Ventures. Also, the existing investors of Railsbank participated in the round.
Railsbank will use the funds to drive international expansion of its various Embedded Finance products – Banking as a Service, Cards as a Service, and Credit as a Service across Europe, Asia Pacific, and North America. Also, the fintech will help its customers remodel and democratise access to the financial services industry.
“Think of Railsbank as being the financial services layer of the Internet,” said Nigel Verdon, CEO and co-founder of Railsbank. “We are transforming the finance industry in the same way that Apple did to the music industry when they created iTunes. Too much of the current global financial services system is made up of aging legacy technology and operational processes, making it unnecessarily complicated, highly expensive and nearly impossible for innovators to create the ‘Spotify’ of financial services.
Betsy Cohen, Chairman of Fintech Masala and founder of Bancorp, added: “The market has evolved so rapidly since we founded the world’s first BaaS business, the Bancorp. As we move into the $7 trillion embedded finance market, it has been great watching Railsbank’s growth story. With this investment, it’s a privilege to continue to be part of the journey with a global leader like Railsbank.”
Chris Adelsbach, Managing Partner of Outrun Ventures, commented: “Outrun Ventures are thrilled to support Railsbank in their recent financing. I’ve had the benefit of being on the front-line of Railsbank as an early investor and Advisory Board member and have been incredibly impressed by their growth. More importantly, as an early stage fintech investor, I’ve witnessed a remarkable change in the volume of companies that are building next generation businesses using Railsbank..”
Leads embedded finance sector
Railsbank’s innovative products, including banking-as-a-service and cards-as-a-service are developed out of its zero-legacy core finance platform. The company is a dominant player in the embedded finance space and acts as a regulated financial institution and a key card issuing member of Visa and Mastercard.
Railsbank was founded in 2016 by fintech veterans Nigel Verdon and Clive Mitchell. The fintech empowering a company, or a brand, to easily prototype, build and scale any financial use case. Its customers use the super simple APIs as building blocks to deliver exciting products for their end users including apps that help manage and distribute money in real-time, reflecting the needs of the customers. The company works with the mission to offer beneficial financial services for everyone.
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