Rapyd, the London-based fintech, is on a quest for funding amounting to 300 million dollars, while its valuation drops to 3.5 billion dollars, a sharp decline from the 9 billion it was valued at in 2021. Drawing on its expertise in financial services such as payments, mobile wallets, and secure transactions, Rapyd is looking to acquire a startup specialized in payment processing to strengthen its market position. This quest illustrates the current challenges faced by many startups, seeking capital despite lower valuations compared to their heyday.
Rapyd seeks new funding
The fintech Rapyd, based in London, is seeking new funding of 300 million dollars. This funding would project the global payments platform to a valuation of 3.5 billion dollars, a significant decrease from its previous valuation of 9 billion dollars reached in 2021. This change illustrates a common trend in the fintech industry where many startups see their valuations adjusted downward. This shift is often the result of revaluations aimed at aligning expectations with the current market realities. With this new round of funding, Rapyd continues to assert itself as a key player in the sector, determined to leverage new opportunities despite the current economic challenges.
Rapyd’s acquisition ambitions
True to its expansion strategy through acquisition, Rapyd plans to use part of the raised funds to acquire a startup specialized in payment processing. This initiative follows a series of acquisitions, including that of Valitor based in Iceland for 100 million dollars in 2022, and the purchase of a PayU unit for 610 million dollars. These transactions demonstrate Rapyd’s commitment to enhancing its all-in-one financial services offering and consolidating its position in the global payments market. With a relentless pursuit of innovation, the fintech aims to provide solutions that are increasingly tailored to the needs of cross-border businesses.
Market context for Rapyd
Rapyd’s choice to raise funds at a lower valuation reflects a market trend where many startups face adjustments in their valuations after years of rapid growth. This phenomenon, known as “down round,” is a consequence of overbidding during the years 2020 and 2021, when funding was abundant. According to PitchBook data, ‘flat’ or down rounds reached a record level in the early months of 2024, representing 27% of all transactions. For Rapyd and other fintechs, navigating this complex environment involves rethinking their financial strategies while continuing to innovate and adapt to the changing demands of the sector.
