Rapyd Financial Network is in discussions to raise US$300 million in new funding, a move that could see its valuation shrink to US$3.5 billion.
This marks a sharp decline from the US$9 billion peak it reached in 2021, according to Bloomberg.
The cross-border payments firm is expected to allocate a portion of the capital toward acquiring a payment processing startup, sources said.
Rapyd has expanded aggressively through acquisitions, including the US$610 million purchase of PayU’s global payments unit, as well as takeovers of Neat and Valitor in recent years.
The funding push comes at a time when fintech firms are facing a more challenging investment landscape, with startups across the sector adjusting to a prolonged downturn in venture capital activity.
Data from PitchBook indicates that 27% of venture deals in early 2024 were flat or down rounds, the highest proportion recorded in over a decade.
Founded in 2016, Rapyd maintains offices in London, Tel Aviv, and other global locations.
Investors include Target Global, Tal Ventures, General Catalyst, and Durable Capital Partners, according to PitchBook.
The company declined to comment on the fundraising discussions.
Featured image: Arik Shtilman, CEO and Co-Founder, Rapyd
