London-based FinTech startup Rapyd has secured an additional $20 million in funding, bringing its valuation to $1.2 billion.
This latest round of funding comes from new investment firm Durable Capital Partners. Rapyd, which built an application programming interface (API) that lets customers tap into a range of financial services, just announced in October that it had closed a $100 million Series C funding round, led by Oak HC/FT and joined by previous investor Stripe. Other investors included Tiger Global, Coatue, General Catalyst, Target Global and Entrée Capital.
Rapyd’s CEO and Co-founder Arik Shtilman said the company is looking to make some acquisitions.
“We’ve started to look at two acquisitions that were bigger than what we originally planned, with prices more in the range of $100 million,” he told reports. While Rapyd has primarily built its technology from the ground up, it is now looking to make acquisitions that will be about “getting at new business very quickly.”
The deals — for a card issuing platform and a payments company in Asia-Pacific — are expected to close in February or March. Asia-Pacific and Latin America are two important locales for Rapyd, which has signed on 20 additional large-scale companies in the past three months, with several of them based, or serving customers, in the two regions. Rapyd’s customers include eCommerce merchants, gig economy platforms, financial institutions and technology providers.
“Durable Capital Partners LP has a vision to identify and invest in promising early stage growth companies, and invest in teams that have bold ideas, but can also execute at a world-class level and build much larger companies,” said Founder Henry Ellenbogen in a statement. “I believe the FinTech-as-a-Service category has tremendous potential, as companies seek to embed financial services as an integral part of the next-generation technology stack. I believe Rapyd is very well-positioned to drive this trend, and I believe Arik’s track record in scaling cloud-based businesses will deliver success in this sector.”