Flutterwave in talks to acquire Railsr, a British fintech?

Amid a challenging funding environment for fintech companies, Flutterwave and a group of existing Railsr shareholders are competing to acquire the British firm, according to Vybz News.

A renowned British fintech is in discussions with potential buyers, one of which is Africa's largest payments technology company, contemplating a sale that would involve a significant discount relative to the first fundraising round.

According to reports from Vybz News, Railsr (formerly Railsbank) is reportedly in talks with several interested parties, including the highly valued Flutterwave.

Embedded finance solutions include banking services, credit cards, and digital wallets, and sources say a consortium made up of a number of previous Railsr investors was also interested in acquiring the company.

According to a reliable source, "strong rivalry for the asset" exists.

The competing bids for Railsr come as the fintech industry braces for a wave of consolidation as businesses struggle to secure adequate standalone investment.

To help get it to a sale, Railsr itself raised a bridge funding round at the end of last year.

On Monday, it was still unknown when the deal would close or what would happen to the property.

For a while now, Railsr has been in talks with FT Partners' investment bankers about several potential strategic moves, including a sale.

The company said they raised $46 million in a Series C investment round last year. However, it kept quiet about the fact that the valuation was far lower than its previous financing round, at around $250m.

Even Railsr has been on the hunt for acquisitions, snatching up the assets of the defunct German firm Wirecard.

Rick Haythornthwaite, formerly chairman of MasterCard and now chairman of Ocado and the AA, was selected as chairman last year, which was a major coup for the company.

Recently, like many of its technological contemporaries, it has laid off a large number of employees.

When asked about Railsr's impact on the financial sector, founder Nigel Verdon compared it to Apple's revolutionary effect on the music business with the introduction of iTunes.

With the help of investors like Visa, Railsr has raised over $100 million in equity capital.

 

For their part, Railsr stayed silent.


Prince

23 Blog posts

Comments
Comments
94 Views