‘Fintech as a service’ provider Rapyd becomes Durable Capital’s first investment
Rapyd, a fintech that provides “fintech as a service” to other fintechs and counts Uber among its clients, is receiving an undisclosed amount of funding from the newly formed investment advisory firm Durable Capital Partners.
In October, Rapyd received $100 million in a Series C round led by Oak HC/FT and Tiger Global, following a $40 million Series B round in February led by General Catalyst and Stripe, with participation from Target Global, IGNIA and other payments and fintech companies.
According to Arik Shtilman, Rapyd's CEO, fintech as a service is a platform that provides capabilities other companies need in order to build fintech-related applications. Rapyd provides technology for payments collection and disbursement, digital wallets, know-your-customer compliance, foreign exchange and card issuing.
These are provided as a set of application programming interfaces that run on top of Rapyd’s software in the Amazon Web Services cloud.
“The only thing a fintech needs to do is to write code against our API, and we remove all the complexity of performing these capabilities in multiple countries,” Shtilman said.
Rapyd has built its own cross-border payments network, which it says includes banks and other regulated payment entities.
Henry Ellenbogen, portfolio manager of the T. Rowe Price New Horizons fund, lead portfolio manager for the firm’s U.S. small-cap growth equity strategy, and group chief investment officer of U.S. equity growth, left T. Rowe Price at the end of March to start his own venture. In October, he launched Durable Capital Partners with at least six former T. Rowe Price employees.
“They are industry experts and they're one of the best technology investors that exist, especially in the public markets,” Shtilman said. “They are known for being good stock pickers.”