According to reports, a consortium is vying to buy the British fintech firm Railsr, and Flutterwave, the largest payment provider in Africa, is a member.
Railsr, formerly Railsbank, provides embedded finance solutions like banking, credit cards, and digital wallets and has attracted interest from rivals like Flutterwave and investors.
“There was severe rivalry for the asset” once the fintech business slowed in 2022. FinTech companies have lost roughly $1 trillion in value, according to a Financial Times investigation.
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How is Railsr progressing?
The British fintech business has successfully raised over $187 million in equity capital with the support of illustrious investors like Visa. The business declared the close of a $46 million Series C fundraising round in October 2022.
Major purchases have been made by the company. In August 2020, it bought Wirecard. Rick Haythornthwaite, the former MasterCard chairman and current chair of Ocado and the AA, became its chairman last year.
Railsr has been impeded by the current economic downturn and other issues. British fintech has suffered layoffs. Northern Borealis, a Cyprus-based freight company, sued Railsr subsidiary PayrNet for nonpayment.
Flutterwave’s strategy
Flutterwave secured $250 million in Series D financing in February 2022, tripling the company’s value to nearly $3 billion in only a year. This was a significant transaction for the fintech industry, and the company there hopes for a stronger strategy.
According to Olugbenga Agboola, CEO of Flutterwave, the company wants to expand through acquisitions in order to solidify its position further as a leader in the finance industry.
The CEO added that “it will happen if we find a fit and see a firm with the same fundamental principles or culture and purpose of making payments simpler across growing economies.” We still have plans for that.
Flutterwave is part of the consortium trying to acquire Railsr, and Railsr founder Nigel Verdon had said that the company is “transforming the banking industry in the same manner that Apple did to the music industry when they developed iTunes.”
Flutterwave’s second publicly acknowledged acquisition will be Railsr, following its 2021 purchase of Disha for an undisclosed six-figure sum.
As of the time of publication, neither Flutterwave nor Railsr had made any formal remarks about the proposed acquisition.
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About Railsr
Railsr, formerly Railsbank, is a London-based open-API banking and compliance platform that gives regulated and unregulated companies access to global banking.
Nigel Verdon and Clive Mitchell laid the groundwork in 2016 for what would become Railsr, an open banking and compliance platform. They provide a platform for financial innovation and growth that is built on an API and is designed for developers and product managers to use in the construction of their respective financial services firms.
Railsr advertises its open API as a tool on which financial services, features, or products may be developed and sold by financial organizations. In addition to the platform, connectivity, operations, scheme memberships, regulation, and compliance, they also provide a full backend for financial services.