Finance software startup Rapyd just hit a $2.5 billion valuation and says it will focus on bigger acquisitions

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    Finance software startup Rapyd just hit a $2.5 billion valuation and says it will focus on bigger acquisitions

    Rapyd co founders, (left to right) Arkady Karpman (VP R&D), Arik Shtilman ( CEO), Omer Priel (VP Corporate Development)

    Rapyd’s cofounders Arkady Karpman (VP R&D), Arik Shtilman (CEO), and Omer Priel (VP Corporate Development)

    Rapyd


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    • London-based fintech startup Rapyd has raised a $300 million Series D led by Coatue.
    • The fresh funding continues the boom in interest for fintech startups, and Rapyd is now valued at $2.5 billion.
    • The startup offers a suite of payment processing services to other developers via an API.
    • Rapyd intends to use the funding to complete more strategic acquisitions, following a deal to buy card payment service Korta in 2020.
    • Visit Business Insider’s homepage for more stories.

    London and Mountain View-based fintech startup Rapyd has raised a fresh Series D funding round of $300 million, led by New York-based fund Coatue. 

    The deal values Rapyd, founded in 2016 by Israeli and Russian entrepreneurs Arik Shtilman, Arkady Karpman, and Omer Priel, at $2.5 billion.

    The company offers ‘fintech as a service’, with an API to enable developers to implement different payments processes. It hasn’t disclosed its customers, but the firm’s site indicates it serves online marketplaces, e-commerce businesses, gig economy platforms, and financial institutions among others.

    “We initially had no interest in fundraising, we are very well funded and business was booming from the pandemic,” Shtilman, Rapyd’s CEO told Insider. “We had a number of investors come to us in September and they have a strong long-term view on the business.”

    Several new investors participated in the financing, including Spark Capital, Avid Ventures, FJ Labs, and Latitude, along with further investment from current investors General Catalyst, Oak FT, Tiger Global, Target Global, Durable Capital, Tal Capital, and Entrée Capital.

    Rapyd has now raised $460 million in funding. Shtilman said that the company’s revenues grew approximately five-fold in 2020, helped by a new onboarding API product for smaller clients which coincided with the beginning of the coronavirus pandemic. Rapyd says it was able to quickly onboard many new businesses as a result.

    The funding will go towards building out the company’s product and engineering teams while a significant portion, around 30-40% will be used on M&A, Shtilman said. The company acquired European card acquirer Korta last year and is in the market for new deals in 2021. “We see a lot of opportunities for bigger-scale M&A with some amazing assets in the physical space which were hit hard worldwide,” he added. 

    Shtilman said Rapyd took incoming calls from investors about potentially going public via a Special Purpose Acquisition Company (SPAC) during 2020, a major trend among tech firms right now. But he added that the company was focused on the business at hand and said it will likely look to IPO “in the coming years.” 

    “The payment landscape varies dramatically across countries. A company doing business globally might need to accept hundreds of local payment methods,” said Kris Fredrickson, managing partner at Coatue. “Rapyd’s API, which abstracts away this complexity, is currently powering what we think are many of the world’s most exciting companies.”


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