D Square Capital has been joined by Moneta VC and Ventura Capital for the purchase and re-capitalisation, which sees Railsr continue trading under a new entity, Embedded Finance Limited, with the existing one going into administration.

The change of control has been agreed with the Financial Conduct Authority, which Railsr says ensures business continuity for its customers, and more than five million end-users. The firm will remain headquartered in the City of London.

The deal includes Railsr’s embedded finance platform and BaaS business, as well as a number of subsidiaries, including its UK regulated subsidiary, PayrNet.

Railsr chair, Rick Haythornthwaite, who remains in place, says: "A huge number of people across the financial ecosystem believe in Railr’s potential and have worked very hard to make this transaction a reality. 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."

Railsr has been looking for a buyer for several months as it faced up to the economic downturn, with a possible deal with African payments technology unicorn Flutterwave falling through.

A year ago, the firm was looking for investment at a $1 billion valuation, but in October it finally secured funds at a heavily discounted $250 million value.

Railsr’s UK subsidiary is also being audited by the FCA while its Lithuanian unit is being investigated over concerns it has been "grossly and systematically" violating money laundering and terrorist financing laws.