UK-based banking-as-a-service (Baas) provider Railsr has been acquired and re-capitalised by Embedded Finance for an undisclosed sum.
The acquiring entity is backed by a consortium of global investors including D Squared Capital, Moneta VC and Ventura Capital.
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The embedded finance provider said that the Financial Conduct Authority has approved the change of ownership.
Railsr, which will remain headquartered in London, noted that the transfer of ownership will allow it to continue its operations.
The move is also expected to help Railsr expand its customer base in the UK and Europe in the coming months.
Railsr chair of the board Rick Haythornthwaite said: “We are absolutely delighted that Railsr is now able to rebuild momentum and return to growth. It is a business that deserved to be recapitalised. Railsr has a best-in-class technology platform that has already given hundreds of fintech customers competitive advantage.
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By GlobalData“We will now get back to basics and manage the business methodically and constructively. We have secured a new chapter for Railsr and are excited about what the future holds.”
D Squared Capital managing director Dan Adler said: “Railsr has the opportunity to maintain its position as the market leader in Europe and capture the ever-burgeoning embedded finance market opportunity. We’re delighted to play a role in this pivotal moment for the company and its customers.”
The announcement comes after Bloomberg reported that the fintech could go under pre-pack administration due to mounting financial and regulatory issues.
Earlier, the Bank of Lithuania forbade the local branch of the fintech company there from bringing on new clients.
