Fintech Pioneer Railsr Announces Sale to Consortium led by D Squared Capital

Railsr, the embedded finance platform, has announced that it has been purchased and re-capitalised by a consortium, led by D Squared Capital, and that a change of control has been agreed with the Financial Conduct Authority in the UK. This ensures business continuity for Railsr’s customers, and more than five million end-users. Railsr will remain headquartered in the City of London.

Rick Haythornthwaite, Chair of the Board, commented: “We are absolutely delighted that Railsr is now able to rebuild momentum and return to growth. It is a business that deserved to be recapitalised. Railsr has a best-in-class technology platform that has already given hundreds of fintech customers 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.”

Haythornthwaite will remain as Chair of the Board of Railsr, which is a leading embedded finance provider in Europe. Railsr’s customer base has remained extremely supportive throughout the M&A process. The company expects to be able to grow the customer base in the UK and Europe in the coming months.

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

Meirav Har Noy, Co-Founder and Managing Partner, Moneta VC, commented: “Railsr’s customers, technology and people have always impressed me and so I have never stopped believing in Railsr. It is truly 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’s an exciting moment in time to ensure the business remains world-leading, in a market valued in the trillions. I can’t wait to seize the opportunities ahead of us.”

Mo El Husseiny, Founder of Ventura Capital commented: “Macro economic challenges aside, this action means we have successfully stabilised Railsr which operates systemic backbone infrastructure underpinning the UK financial system. This is good news for its customers and for the millions of end connected users sitting atop the Railsr platform. Embedded finance is the future and its potential is huge. We are stepping into this future together with our trusted partners.”