Israeli fintech company Rapyd has raised $40 million in a Series B financing round led by US venture capital fund General Catalyst and Strip, the world's largest fintech company and with the participation of previous investor Target Global Fund and Mexican venture capital fund IGNIA as well as private investors. The financing round was carried out at a company valuation of $300 million.
Rapyd has developed a fintech-as-a-service platform for transferring payments worldwide via bank transfers, digital wallets, cash and other payment methods. With offices in Tel Aviv, San Francisco, London and Singapore, the company has 100 employees, 65 of them in Israel. Rapyd has raised $60 million to date, including the latest financing round and including $5 million from founders CEO Arik Shtilman, VP R&D Arkady Karpman and VP business development Omer Priel who established the company in 2016.
Rapyd was founded as Cashdash and raised $15 million in its Series A financing round in January 2018.
Shtilman told "Globes," "Until the end of 2017 when we began working with customers, we worked in stealth building a payments technology and infrastructures. Our customers are large e-commerce companies and platforms engaged in ridesharing and food deliveries and are currently worth tens of billions of dollars. Because we are a white label model platform, we do not disclose the names of customers, but we serve some of the world's biggest names in these sectors. They come to us because they need a worldwide solution and not a solution that will work in this or than location."
He added, "Today, in order to build worldwide solutions in finance, you need to 6 or 7 suppliers in every country and link up with them in order to conduct operations such as collecting money from customers, paying out the money, verifying identities and the like. We have succeeded in creating a situation in which we have one solution with one interface and which provides this solution to customers in all the countries that they want to work, and with one contract. We let them build payment applications that fit their needs through one API."
"Our advantage in this world," Shtilman continued, "is that we don't come from the world of these finances but rather the cloud computing sector. One of the most complicated things in the fintech world is the ability to build scalable solutions that can perform millions of transactions, anywhere in the world and that is a very big technological difficulty. But we have taken advantage of the technology and knowhow that we have learned from other areas for the benefit of fintech. We have also defined a new way of working in the world of fintech, which derives from the software sector and is similar to SaaS, and it is in effect a fintech-as-a-service platform, with our customers paying for the service and not for the technology."
Published by Globes, Israel business news - en.globes.co.il - on February 13, 2019
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