Israeli financial technology firm Rapyd has raised $300 million in its latest funding round, making it Israel’s most valuable privately owned startup.
The company did not disclose its valuation in its Tuesday announcement on the Series E funding round, but estimates put the company’s value at $8.75-$10 billion.
New investors included the Fidelity Management and Research Company, Altimeter Capital and BlackRock Funds. The financing round was led by European venture capital firm Target Global.
Rapyd, a fintech-as-a-service platform, offers an array of financial services that facilitate local and cross-border payments for businesses. Its offerings include digital wallets, fraud protection, money transfers, invoicing, multi-currency support and point of sale solutions.
The company said it merges over 900 payment methods in over 100 countries. It is expected to handle over $20 billion in payments this year and service around 12,000 small and medium-sized businesses and 650 larger clients, according to TechCrunch.
Rapyd also raised $300 million in its previous funding round in January at a valuation of $2.5 billion, highlighting its swift growth in recent months. The fintech sector as a whole has benefited from the migration to online shopping spurred by the pandemic.
“Enabling digital payments has become one of the most fundamental business needs across every industry as the past year and a half have irrevocably demonstrated,” said Rapyd co-founder and CEO Arik Shtilman.
“We plan to use the funding to continue to build out our global fintech as a service platform and invest in strengthening our network capabilities worldwide. We will continue to expand our presence across high-growth markets in Europe, Asia-Pacific, the US, and Latin America, where Rapyd’s platform can support businesses looking to grow internationally,” Shtilman said in a statement.
Investments in Israel’s financial technology sector have surged to record highs this year.
Israeli fintech firms raised a record $2.3 billion in venture capital investments in the first half of the year, before Rapyd’s latest round, according to a report by Start-Up Nation Central, a nonprofit that tracks Israel’s tech industry.
The sum represented a leap of 260 percent over fintech investments in the first half of last year, and was 28% higher than the $1.8 billion invested in the sector in all of 2020.
The sector’s success is linked to COVID-19, which impelled demand for online payment solutions, corporate innovation and Federal Reserve policies that paved the way for market activity in the United States, the report said.
Before Rapyd’s latest funding round, Gong briefly held the record as the highest valued Israeli startup following a funding round in June that put its valuation at $7.25 billion.
Rapyd is based in California and maintains offices in Tel Aviv, London and Singapore. It was founded in Israel as CashDash in 2015.