UK embedded FinTech Railsr aquired by D Squared Capital Consortium

By Gloria Methri

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

The FinTech, once worth 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 deal. However, it was valued at around $250 million in October 2022, when it was still solvent.

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

Rick Haythornthwaite, Chair of the Board, said, “Railsr has a best-in-class technology platform that has already given hundreds of FinTech customers a competitive advantage. A huge number of people across the financial ecosystem believe in Railr’s potential and have worked very hard to make this transaction a reality. We will now get back to basics and manage 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 remained supportive of the M&A process and the company expects growth in the customer base in the UK and Europe.

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

Meirav Har Noy, Co-Founder and Managing Partner, of Moneta VC, added, “Railsr is a global pioneer of embedded finance, operating at the very heart of London’s innovative FinTech scene. We know we need to work extremely hard to support our customers and navigate a fast-changing regulatory environment, but it is an exciting moment in time 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 & Marsal, who oversaw the sale of the company said, “We are pleased to have been able to support with the sale of the business and certain assets of Railsbank Technology Limited (Railsr). The transaction secures the future of the business and ensures the continuation of service for over four million customers.”