Embattled embedded banking company Railsr has staved off collapse after its assets were acquired by an investor consortium for an unknown sum.
The Financial Conduct Authority has permitted the sale of Railsr to an entity called Embedded Finance LTD, which is backed by D Squared Capital, along with Moneta VC and Ventura Capital.
It comes after the fintech had been struggling to find a buyer for months. The business Railsbank Technology Limited will go into administration and its assets transferred to Embedded Finance Limited.
In a statement, Railsr said the sale meant it was “re-capitalised” to ensure “business continuity” for its customers. London-headquartered Railsr provides banking, cards, credit and reward services through its embedded finance platform.
“We will now get back to basics and manage the business methodically and constructively,” said Rick Haythornthwaite, chair of the board, Railsr.
“We have secured a new chapter for Railsr and are excited about what the future holds.”
The rescue deal comes less than six months after it announced a £40m Series C funding round.
Dan Adler, managing director of D Squared Capital, said: “Embedded finance has the potential to spur innovation, shape business models and shift consumer experiences.
“Railsr has the opportunity to maintain its position as the market leader in Europe and capture the ever-burgeoning embedded finance market opportunity.”
Users of Railsr are expected to see “no impact” during the transition.
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