UK fintech Railsr sold to consortium of VC firms
UK-based embedded finance platform Railsr has been bought by a consortium of venture capital firms led by D Squared Capital. Financial details of the sale remain undisclosed.
Railsr says that the consortium, consisting of global investors D Squared Capital, Moneta VC and Ventura Capital, has re-capitalised the firm and confirmed that a change of control has been agreed with the UK’s Financial Conduct Authority (FCA).
The company says this will ensure business continuity for its customers and its more than five million end-users. The firm will remain headquartered in London and plans to grow its customer base in the UK and Europe over the coming months.
Railsr board chair Rick Haythornthwaite, who joined the board in August and will remain as chair post-sale, says Railsr is now able to “rebuild momentum and return to growth”.
“A huge number of people across the financial ecosystem believe in Railsr’s potential and have worked very hard to make this transaction a reality. We will now get back to basics and manage the business methodically and constructively.”
Reports that the firm was eyeing a sale appeared at the end of last year, shortly after the company raised $46 million in a Series C funding round.
African paytech giant Flutterwave was named among the interested parties.
Railsr is also understood to be facing an investigation by the Bank of Lithuania over alleged anti-money laundering (AML) and terrorist financing failings within its Lithuanian subsidiary.