The Series C fundraise constituted $26m of equity and $20m of debt. The equity portion was led by Anthos Capital, who led the Railsr Series B in July 2021, and includes other existing investors Ventura, Outrun Ventures, CreditEase and Moneta. The debt portion of the round was with Mars Capital, a new investor in the company.

Railsr was reported earlier this year to be searching for a $100 million investment that would have pushed the firm into Unicorn territory. A combination of inflationary pressures, rising interest rates and VC pullback has since tempered expectations.

Railsr CEO and co-founder Nigel Verdon remains unperturbed: "We have achieved another milestone and closed our Series C, a significant step on our route to profitability. Whilst we must take into account the challenging macroeconomic and geopolitical backdrop we operate against today, it remains a good time to be a fintech business growing new embedded finance micro-economies.”

A recent report from consultancy Bain forecasts that the embedded finance market would grow from $2.6 trillion to exceed $7 trillion over the next four years.

Says Verdon: “The market is accelerating towards embedded finance. We are seeing a growing demand for embedded finance experiences, particularly amongst younger age groups. 64% of 18-24 year old GB adults would be likely to access financial or banking services from Amazon, for example.”

Railsr’s embedded finance proposition comprises banking, wallets, cards and credit products. The company currently counts 300 customers, including recent wins at HelloCash, Sodexo and Payine.