Embedded finance platform Railsr has closed a Series C round of $46 million in debt and equity funding.
The London company allows any brand to create and embed financial experiences into any point of the customer journey, including banking, wallets, cards and credit products.
The $26m equity portion was led by Anthos Capital, who led Railsr’s Series B in July 2021, and includes other existing investors spanning Europe, North America and Asia: Ventura, Outrun Ventures, CreditEase and Moneta.
The debt portion of the round was with Mars Capital, a new investor in the company.
“I am absolutely delighted that less than four months after Railsbank evolved to become Railsr, we have achieved another milestone and closed our Series C, a significant step on our route to profitability,” said CEO and co-founder Nigel Verdon.
“We set out to challenge old finance and this is what we will continue to do. Our strategy and success to date has come from the way we prioritise customers, invest in technology, empower teams and execute relentlessly to continue our journey.
“Whilst we must take into account the challenging macroeconomic and geopolitical backdrop we operate against today, it remains a good time to be a fintech business growing new embedded finance micro-economies.”
Railsr has built a portfolio of more than 300 customers who are disrupting the financial and retail industries. Recent customer wins include HelloCash, Sodexo and Payine.
Mike Galvin, co-founder and chief commercial officer of Railsr partner Toqio, said: “Toqio has built a strong collaborative partnership with Railsr delivering financial services to our joint customers at scale and pace.
“The Railsr partnership has allowed Toqio to deliver cost effective financial services solutions to the market and has been one of the key enablers of our growth. We look forward to our continued collaboration.”
In May, the company appointed England Rugby legend Will Carling OBE as an advisor, while in August, Rick Haythornthwaite joined as its inaugural chairman of the board.
Meirav Harnoy, co-founder and managing partner at Moneta VC, said: “It has been a pleasure to see Railsr go from strength-to-strength as a challenger to old finance and a creator of the embedded finance economy.
“Railsr’s customers, technology and people have impressed me since I led the Series A investment round. I’m excited to see what comes next.”