Rainforest has closed a $20M Sequence A led by Matrix Companions, with participation from current buyers together with Accel, Infinity Ventures, BoxGroup, The Fintech Fund, Tech Sq. Ventures, Ardent Enterprise Companions, and various strategic angels.
Explosive progress of AI mixed with regulatory scrutiny round fintech creates the impression that fintechs aren’t getting funded. By way of discussions with buyers, they discovered the fact is extra nuanced. In Rainbow’s case, buyers have been interested in their:
- Core know-how
- Deep experience as funds founders, SaaS leaders, and consultants
- Unwavering dedication to high quality and customer support
- Development since their final elevate
Matt Brown, Companion at Matrix: “Funds are nonetheless surprisingly siloed, inaccessible, and user-unfriendly. Nevertheless, trillions in cost quantity are shifting from old-school options to trendy software program platforms with embedded monetary providers. Rainforest is a dramatically higher expertise for patrons, sellers, and the platforms that join them. I’ve based and invested in corporations with this software program plus embedded monetary providers mannequin over the past decade. I’ve seen dozens of approaches to funds, however none come near Rainforest. They’ve constructed their core tech, not only a wrapper round others. They’re specialists not simply in funds, however in SaaS, platform progress, danger, and the numerous different areas you’ll want to pull this off. Their spectacular traction speaks for itself. I’m thrilled to assist them as they proceed modernizing embedded funds.”
Development thus far
Rainforest was constructed from the bottom as much as be the PayFac-as-a-Service supplier that might compete towards the large trendy processors and scaled service provider acquirers. And win.
Rainforest are additionally successful towards smaller upstarts due to our responsiveness, transparency, and deep trade experience.
Since their final spherical, they’ve grown in three huge methods – all in service of serving to software program platforms drive income and enhance retention whereas seamlessly accepting and sending funds.
Rainforest have continued to put money into our core product to scale back fraud and assist platforms improve funds adoption.
- Applied 3DS to guard retailers and cut back fraud
- Added assist for Apple Pay to scale back checkout friction and assist platforms develop cost quantity
- Launched a set of enhancements to our service provider onboarding element, together with Plaid financial institution verification and service provider self-service choices
The variety of SaaS platforms stay on Rainforest has grown by 5x and whole processing quantity by greater than 17x.
Rainforest have continued to develop within the healthcare, trucking, and specialty retail industries whereas including platforms in skilled providers, discipline providers, and donation administration.
They’ve signed a number of platforms with billions in annual processing quantity and gained platforms away from low-cost opponents.
Their progress continues to be pushed primarily by phrase of mouth as SaaS leaders refer their friends. Even founders who selected various suppliers and remorse their alternative are actually referring Rainforest. VC and PE companies – together with companies who should not invested in Rainforest
They’ve additionally expanded their engineering, cost operations, platform success, and go-to-market groups. This fundraise places Rainforest able to put money into the areas that almost all materially influence our platform companions’ success: product and assist.
Rainforest will speed up funding of their core product, together with options and enhancements requested by our platform companions. Their roadmap contains:
- Further cost strategies
- Programmable funds flows
- Elevated self-serve performance in our embeddable parts
- Expanded terminal choices
- Automated interchange optimization
Rainforest are additionally increasing our Platform Success and behind-the-scenes Fee Operations groups to make sure that our signature white-glove assist stays a relentless amidst progress.
