London-based FinTech Railsr has announced a sale to a shareholder consortium in a move which has been described as a ‘rescue deal’.

While the embedded finance startup formerly known as Railsbank was once valued at nearly $1 billion, a failed sale to pan-African financial services company Flutterwave and subsequent failed attempts to find a buyer combined with its purchase of collapsed German FinTech Wirecard's UK client base in 2020 left Railsr facing the prospect of going out of business.

The valuation of the sale has not been disclosed, with Raislr last valued at around $250 million in October 2022. The purchasing consortium, Embedded Finance Ltd, includes previous Railsr’s investors such as D Squared Capital, Moneta VC and Venture Capital.

As part of the deal, the company will go into administration so it can continue operating its day-to-day business while restructuring. The company said that it will still remain based in London.

Rick Haythornthwaite, who will remain as chair of the board, said: "We are absolutely delighted that Railsr is now able to rebuild momentum and return to growth. It is a business that deserved to be recapitalised.

“Railsr has a best-in-class technology platform that has already given hundreds of FinTech customers competitive advantage. A huge number of people across the financial ecosystem believe in Railr's potential and have worked very hard to make this transaction a reality."

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