UK embedded finance firm Railsr reportedly considering sale
UK-based embedded finance platform Railsr is exploring a potential sale just weeks after it raised fresh capital in a Series C funding round, according to a Sky News report.
Railsr is reportedly considering a sale
Sources told Sky News that the company is discussing a number of strategic options with US investment banking firm FT Partners, including the possibility of a sale. The report adds that while further fundraising is an option on the table, it currently does not look likely.
Last month, Railsr raised $46 million in a Series C funding round, which CEO and co-founder Nigel Verdon said at the time was a “significant step on our route to profitability”.
However, according to Sky News, the funding took place at a reduced valuation of $250 million – which was not disclosed by Railsr at the time.
“The market conditions over the past 12 months are driving market consolidation, as it did in the past when multiple companies came together to build what is today called PayPal,” Verdon comments.
“Therefore, this is just a normal market cycle where everyone is evaluating potential partnerships, and we’re no different.”
Rick Haythornthwaite, who was appointed as chairman of the board for Railsr this August, says the company is observing “a race to scale and attract competitive advantage”.
“And so like other players, we are looking at imaginative structural solutions to secure a vibrant future in an attractive field,” he adds.
