Rapyd Faces Major Valuation Cut in Latest Funding Talks
Hey FinTech Fanatic!
Rapyd, the Stripe competitor known for its bold acquisition strategy, is facing a sharp valuation cut as it looks to raise $300 million. Once valued at $9 billion in 2021, the company is now in talks with investors at a significantly lower $3.5 billion valuation. This move comes as startups across the FinTech sector navigate a challenging funding landscape.
Despite the downturn, Rapyd isn’t slowing down. The company plans to use the fresh capital for yet another acquisition, further cementing its position in the payments space. CEO Arik Shtilman compared their strategy to Pac-Man, stating at last year’s Dubai FinTech Summit: “This growth allows us to be more influential in the financial sector, similar to playing a strategic game of Pac-Man where we aim to be the dominant player.”
Rapyd’s aggressive expansion has seen it acquire companies like PayU’s payment units, Neat, and Valitor. However, with down rounds making up 27% of all deals in early 2024—the highest in over a decade—Rapyd is not alone in facing valuation cuts. Will its next move keep it ahead of the competition? Stay tuned.
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