- London-based Rapyd announced that it has raised $20 million in funding at a $1.2 billion valuation
Rapyd — a London-based company that has developed an API that enables customers to tap into several financial services like payments, funds, checkout, etc. — announced it raised $20 million at a valuation of $1.2 billion. This is a $200 million jump from its $1 billion valuation in October.
The $20 million was provided by Durable Capital Partners, which is an investment adviser founded by Henry Ellenbogen. Before launching Durable Capital, Ellenbogen spent 18 years at T. Rowe Price where he was Portfolio Manager of the Media & Telecom Fund and the New Horizons Fund. Plus Ellenbogen was also T. Rowe Price’s Chief Investment Officer for U.S. Equity Growth.
Including this round of funding, Rapyd has now raised a total of $180 million. The company’s previous investors include Oak HC/FT Tiger Global, Coatue, General Catalyst, Target Global, Stripe, and Entrée Capital.
Rapyd CEO Arik Shtilman said that this funding round will be used for acquisitions sometime in the near future.
“We’ve started to look at two acquisitions that were bigger than what we originally planned, with prices more in the range of $100 million,” said Shtilman via TechCrunch.
These acquisitions are currently in progress and are expected to close in February or March. One of these companies is a card issuing platform and the other company is a payments company based in the Asia Pacific region.
Over the past 3 months, Rapyd signed on 20 additional large-scale companies. Some of the companies include e-commerce companies along with gig economy companies like Uber.
“Durable Capital Partners LP has a vision to identify and invest in promising early stage growth companies and invest in teams that have bold ideas but can also execute at a world-class level and build much larger companies. I believe the Fintech-as-a-Service category has tremendous potential as companies seek to embed financial services as an integral part of the next generation technology stack. I believe Rapyd is very well positioned to drive this trend and I believe Arik’s track record in scaling cloud-based businesses will deliver success in this sector,” said Ellenbogen.