Media & Entertainment

Rapyd nabs $40M led by Stripe and GC for ‘fintech as a service,’ a single API for payments, money transfer and more

Comment

Image Credits: Peter Majkut (opens in a new window) / Shutterstock (opens in a new window)

As ever more transactions move onto digital platforms, a startup that is building a Swiss army knife of financial services — from payments to currency transfers, ID verifications and card issuing for companies to use by way of a single API — is announcing funding. Rapyd, a “fintech as a service” startup akin to AWS for financial services, according to its CEO, has raised $40 million. The company plans to use the funds to continue to add more functions to its platform, more staff to build them and to expand its customer base.

This Series B is notable because it is being co-led by Stripe, the payments giant that is now valued at $22 billion, as well as General Catalyst, one of Stripe’s biggest backers, which has for years also co-invested with it in strategic startups. Others in this round include Target Global (a previous investor) IGNIA and other strategic payments and fintech companies that Rapyd is not disclosing.

It’s not clear if Stripe is investing as a customer, or if it is simply backing Rapyd as an interested party (as it has in other startups it has backed): Arik Shtilman, the co-founder and CEO of Rapyd, said in an interview that he couldn’t say how and if his company and Stripe were working together. Stripe, as you might know, has made a big move to expand the kinds of services it provides to its customers beyond basic payments, and it has also continued to expand its coverage to more of the world, so there is potential for Rapyd to be involved in a number of areas.

This takes the total raised by Rapyd — based out of Silicon Valley but with R&D offices in Tel Aviv — to $60 million. Shtilman would not comment on the startup’s valuation.

(Notably, his previous company — an Israeli-based cloud services startup called ITNavigator — was sold to Avaya several years ago, reportedly for less than $100 million.)

Rapyd opened for business at the end of 2017 and Shtilman says it is on track to make “tens of millions” in revenues this year.

While it will not disclose any specific names, it currently has around 50 customers in areas like e-commerce and “gig economy”-based businesses (i.e. Uber-style transport services), as well as other types of companies where financial transactions may not be a company’s core competency, but are central to how it operates.

Like other fintech startups such as Adyen (as well as Stripe, PayPal and others), which aim to simplify complex problems behind easy-to-integrate APIs, Rapyd has built a suite of services — currently numbering five: funds collection, funds payouts, currency transfers, ID verification and card issuing, with the idea that more will be added soon — that knit together several steps behind the scenes to make the process of offering that service easy for the company, and ultimately easy for the customer to use.

For example, in payments, it works with some 100 banks around the world to enable fund collection and disbursement across a wider geography, and it’s working on extending that to 150. It can handle payments and transfers in 65 currencies and can pay out funds in more than 170 countries. Its commissions on payments are straightforward — 3.5 percent plus 30 cents for funds in; $1.50 plus one percent in cases of currency exchange for funds out — although you have to contact the company for pricing on other services.

But Rapyd’s rapid rise also runs counter to a strong trend that we’ve seen up to now in the growth of fintech. Over the last several years, there have been a plethora of startups that have launched, and thrived, by offering very streamlined products, serving a single or a small handful of related purposes. Rapyd, however, believes that ultimately that isn’t how businesses want to work.

“Simplicity is the name of the game,” Shtilman said. “It doesn’t make sense to connect five to seven different providers into your backend when you can connect just one.”

Indeed, that need will likely also lead to more consolidation in the wider, fragmented fintech market, which will also create more competition for Rapyd. But for now, it’s a compelling enough and fast-enough moving market that there is an opportunity for a startup building this in a clever way to pick up speed — and maybe even a strategic buyer who also needs this exact functionality — quickly.

“Rapyd’s product offering helps merchants, banks, telcos and fintech companies expand the scope of the products they offer, increase the number of customers they reach, and improve the overall customer experience, said Adam Valkin, partner of General Catalyst, in a statement. “Rapyd does this by helping drive the ubiquity of payment and payout options beyond debit and credit cards, towards cash, bank transfers, instant payments, e-wallets, and mobile money.”

More TechCrunch

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI is removing ChatGPT’s AI voice that sounds like Scarlett Johansson

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft Build 2024: All the AI and hardware products Microsoft announced

Hello and welcome back to TechCrunch Space. For those who haven’t heard, the first crewed launch of Boeing’s Starliner capsule has been pushed back yet again to no earlier than…

TechCrunch Space: Star(side)liner

When I attended Automate in Chicago a few weeks back, multiple people thanked me for TechCrunch’s semi-regular robotics job report. It’s always edifying to get that feedback in person. While…

These 81 robotics companies are hiring

The top vehicle safety regulator in the U.S. has launched a formal probe into an April crash involving the all-electric VinFast VF8 SUV that claimed the lives of a family…

VinFast crash that killed family of four now under federal investigation

When putting a video portal in a public park in the middle of New York City, some inappropriate behavior will likely occur. The Portal, the vision of Lithuanian artist and…

NYC-Dublin real-time video portal reopens with some fixes to prevent inappropriate behavior

Longtime New York-based seed investor, Contour Venture Partners, is making progress on its latest flagship fund after lowering its target. The firm closed on $42 million, raised from 64 backers,…

Contour Venture Partners, an early investor in Datadog and Movable Ink, lowers the target for its fifth fund

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says