Back from the dead: Railsr secures $24M in funding to rebuild momentum 🎉; Major milestone in Latin America: Nubank reaches 90M customers 🤯

FinTech is Eating the World, 30 October

Hey Everyone,

Happy Monday & happy new week! Today we’re going to look at Railsr getting back from the dead as it secures $24M in funding to rebuild momentum (what it’s all about & how can Railsr make it work + some bonus reads), and major milestone unlocked in LatAm as Nubank reaches 90M customers (how we got there + some deeper dives into NU). Let’s jump straight into the interesting stuff 🌶

Back from the dead: Railsr secures $24 million in funding to rebuild momentum 🎉

The news 🗞️ British FinTech Railsr has just secured $24 million in new funding from existing investors as it looks to rebuild momentum after being forced into administration earlier this year.

ICYMI: Revealed: once flirting with unicorns, Railsr was sold at a 99.8% discount 🤯

The fresh capital comes just months after the company underwent an insolvency process to facilitate its survival amidst regulatory troubles. Solid work 👏

Let’s take a closer look at this.

More on this 👉 Railsr, which operates under the parent company Embedded Finance, aims to use the new financing to fuel sustainable growth and cement its position as a leader in embedded finance solutions.

ICYMI: Here’s your gentle reminder that the Future of Finance is Embedded 🔗 [+ more read & deep dives]

Railsr was an early pioneer in the space but fell victim to overexpansion without adequate internal controls. It also ran into regulatory problems in Lithuania, leading to the revocation of its license. The company has since set up a new entity in France to obtain an Electronic Money Institution license to passport across Europe.

Restoring confidence 💸 The experienced leadership team has helped Railsr clean up and restore regulator confidence. Investor confidence is similarly returning, with existing backers D Squared Capital and Moneta Venture Capital participating in the latest round.

But will this be enough? Probably not unless the lessons are learned. Here are the most important ones 👇🏼