Embedded banking platform Railsr has been rescued from collapse after it was snapped up by a group of investors led by London-based D Squared Capital.
The City-based fintech, which has been on the hunt for a buyer after running into cash troubles in the past year, said today that it had been “purchased and re-capitalised” by the consortium of investors.
The Financial Conduct Authority approved the takeover, Railsr said.
Railsr declined to give a value for the deal when asked by City A.M., but bosses said that the firm will retain its base in the Square Mile after the takeover.
Rick Haythornthwaite, chair of the Railsr, said the firm was now looking 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,” he said.
“A huge number of people across the financial ecosystem believe in Railsr’s potential and have worked very hard to make this transaction a reality,” he said.
“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,” Haythornthwaite said, who will remain as chair of the board.
D Squared Capital managing director Dan Adler said Railsr now has the opportunity to “maintain its position as the market leader in Europe”.
“We’re delighted to play a role in this pivotal moment for the company and its customers,” he said.
