UK embedded FinTech Railsr acquired by D Squared Capital Consortium

By Gloria Methri

Embedded finance platform Railsr, formerly known as Railsbank, has announced its sale to a consortium of shareholders and a change of control has been agreed with the Financial Conduct Authority in the UK.

The FinTech, once valued at nearly $1 billion, has been jointly acquired by D Squared Capital, Moneta VC and Venture Capital. The company did not disclose the value of the agreement. However, it was valued at around $250 million in October 2022, when it was still solvent.

The agreement ensures business continuity for Railsr’s customers and more than five million end users.

Rick Haythornthwaite, Chairmansaid, “Railsr has a best-in-class technology platform that has already given hundreds of FinTech customers a competitive edge. A large number of people across the financial ecosystem believe in Railr’s potential and have worked very hard to make this transaction a reality.” We are now going back to the basics and managing the business methodically and constructively. We have secured a new chapter for Railsr and are excited about what the future holds.”

Railsr’s customers have continued to support the M&A process, and the company expects growth in its customer base in the UK and Europe.

Dan Adler, Managing Director, D Squared Capitalsaid, “Embedded Finance has the potential to drive innovation, shape business models and change consumer experiences. Railsr can maintain its position as a market leader in Europe and capture the ever-growing market opportunity for embedded finance. We are excited to play a role in this pivotal moment for the company and its customers.”

Meirav Har Noy, co-founder and managing partner of Moneta VCadded, “Railsr is a global pioneer in embedded finance, operating at the heart of London’s innovative FinTech scene. We know we have to work extremely hard to support our customers and navigate a rapidly changing regulatory environment, but it is an exciting moment to ensure the business remains world-leading, in a market valued in the trillions.”

Mark Firmin, managing director and UK head of insolvency at Alvarez & Marsalwho oversaw the sale of the company said: “We are delighted to have been able to support the sale of the business and certain assets to Railsbank Technology Limited (Railsr). The transaction secures the future of the business and ensures the continuation of the service for over four million customers.”