Flutterwave in talks to acquire Railsr

African fintech firm, Flutterwave, is in talks to potentially acquire the prominent British fintech company, Railsr. Reports suggest that Railsr, a London-based embedded finance start-up that rebranded from Railsbank last year, has been facing challenges in the current funding environment. The company laid off a reported 16% of its staff in November, despite closing a $46 million Series C round a month earlier at a significantly reduced valuation. Railsr has raised over $100 million in equity funding from investors including Visa.

According to reports, a sale that would occur at a significant discount to an earlier investment round is currently being discussed by the British fintech, with competitors among the suitors, as well as existing investors, and Africa’s largest payments technology company, Flutterwave.

Flutterwave, which became Africa’s highest-valued start-up at $3 billion on the back of last February’s $250 million Series D round, is now competing with other interested parties to acquire Railsr. The latter has built a valuable operation across banking services, credit cards, and digital wallets.

The potential acquisition of Railsr by Flutterwave aligns with the company’s strategy of “growing inorganically through acquisitions” to consolidate its position in the fintech space, as stated by its Co-Founder and CEO, Olugbenga “GB” Agboola, at the point of announcing last year’s big raise. If successful, this would be Flutterwave’s second publicly disclosed acquisition, following its purchase of the creator platform, Disha, in 2021 for an undisclosed six-figure amount.

The fintech sector is currently anticipating a wave of consolidation as companies struggle to access sufficient funding to survive. Railsr closed a bridge round last year, believed to be geared towards helping the business tide over until the completion of a sale. The timing and outcome of the ongoing sale process remain unclear.

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