Payment provider Rapyd is reportedly in discussions to secure $300 million in funding from investors, valuing the company at $3.5 billion.
This valuation represents a significant decline from its peak value of around $9 billion in 2021, and a substantial drop from its early 2022 valuation of $15 billion.
In 2022, Rapyd’s valuation reached $15 billion in several secondary deals, where early investors sold shares.
This valuation was a testament to the company’s aggressive growth strategy, which has included the acquisition of several payment processing companies.
Rapyd has been actively expanding its footprint through strategic acquisitions. The company has acquired four companies to date, including units of payment service provider PayU for $610 million, international trading platform Neat, and Icelandic payments firm Valitor.
According to sources familiar with the matter, Rapyd intends to use the proposed funding to acquire a payment processing startup.
Rapyd operates in the highly competitive cross-border financial transactions market, where it competes with established players like Stripe Inc.
The company’s digital platform enables businesses to facilitate international transactions, and its aggressive acquisition strategy has helped it expand its offerings and reach.
The proposed funding round, which values Rapyd at $3.5 billion, represents a significant decline from its previous valuations.
This considerable reduction in valuation may be indicative of the current market conditions, where investors are increasingly cautious and valuation multiples are being reassessed.
Rapyd’s proposed funding round and reduced valuation highlight the evolving landscape of the payment processing industry.
As the company continues to expand its product offerings and reach through strategic acquisitions, it will be interesting to observe how it navigates the increasingly competitive market and adapts to changing investor sentiment.
As covered in September 2024, Rapyd, a global fintech company, is expanding its Rapyd Payment Partner Program, designed to boost revenue growth and collaboration for Referral Partners, consultants, Independent Sales Organizations (ISOs), Payment Facilitators (PayFacs), and Integrated Software Vendors (ISVs) operating in high-opportunity industries such as eCommerce, online gaming, content creator economy, and financial services.
Rapyd explained that these particular industries often face the challenge of finding “a card-acquiring partner committed to long-term business support and ensuring always-on payment operations.”
Rapyd addresses these needs with tailored solutions “designed to tackle unique challenges such as multi-region payment acceptance, higher authorization rates, fraud prevention, end-to-end dispute management, and global compliance expertise.”