Embedded finance venture Railsbank raises $70 million

UK-based Banking as a Service outfit Railsbank has raised $70 million in a funding round led by Anthos Capital.

The likes of Central Capital, Cohen and Company and Chris Adelsbach’s new fund Outrun Ventures, along with existing investors, also participated.

Railsbank, which last raised money ($37 million) in November of last year, will use the funds to expand its embedded finance products (Banking as a Service, Cards as a Service, and Credit as a Service) across Europe, Asia Pacific and North America.

The venture’s platform is used by customers such as FinTechs, telcos, supermarkets and consumer brands.

Launching a credit card on your own? No need. Check out Railsbank's quick, easy, full-scale solution in our fun new campaign, and visit our website to find out more 👉 https://t.co/70YCiz1qvm #creditcards pic.twitter.com/l4dq1tGCWT
— Railsbank (@railsbank) May 5, 2021

“Think of us as being the financial services layer of the Internet,” says Nigel Verdon, CEO and Co-founder, Railsbank.

“We are transforming the finance industry in the same way that Apple did to the music industry when they created iTunes.”

“Too much of the current global financial services system is made up of aging legacy technology and operational processes, making it unnecessarily complicated, highly expensive and nearly impossible for innovators to create the Spotify of financial services.”

“We are changing that by combining our ‘zero legacy’ platform with deconstructing financial services into individual digital components.”

He adds": “Because we have created these individual financial components, our customers can easily embed financial products directly into their own customer experiences at exactly the point where consumers and SMEs need financial services, not at the point when traditional providers forced them to.”

“This will finally make financial services customer centric and inclusive, rather than the situation today which is institution centric and exclusive.”

Chris Adelsbach comments: "I speak to dozens of founders every week and I've rarely gone through a week where a company doesn't tell me that they are working with Railsbank.”

“When I asked them 'why', their collective responses gave me the conviction to make a later stage investment. Embedded finance makes financial services far more accessible for customers and Railsbank has a solution that is in a league of its own.”