(Bloomberg) — Rapyd Financial Network is in talks to raise $300 million from investors at a $3.5 billion valuation, according to people familiar with the matter, a dramatic decline from its value of around $9 billion in 2021.
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The company, which offers a digital platform for cross-border financial transactions and competes with Stripe Inc., intends to use the funding in part to acquire a payment processing startup, said one of the people, who asked not to be identified discussing private information.
A Rapyd representative declined to comment.
Rapyd, known for its aggressive acquisition strategy, has previously expanded its footprint by buying four companies, including units of the payment service provider PayU for $610 million, international trading platform Neat and the Icelandic payments firm Valitor.
“This growth allows us to be more influential in the financial sector, similar to playing a strategic game of Pac-Man where we aim to be the dominant player,” Rapyd co-founder and Chief Executive Officer Arik Shtilman said at the Dubai FinTech Summit last year about the company’s acquisition strategy.
Rapyd joins a growing number of startups raising money at lower valuations, also called a down round, as most of the sector weathers a prolonged funding drought. In 2022, as the market cooled from its pandemic highs, European fintech Klarna Bank AB cut its valuation by about $39 billion in a funding round. According to data provider PitchBook, flat or down rounds represented 27% of all deals in the first three quarters of 2024, the highest portion in more than a decade.
Rapyd, founded in 2016, has offices in London, Tel Aviv and elsewhere. Its previous investors include Target Global, Tal Ventures, General Catalyst and Durable Capital Partners, according to PitchBook.
(Updates with market details in the penultimate paragraph.)
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