African fintech giant, flutterwave, is bidding to acquire British fintech company, Railsr, alongside an association of existing shareholders of the Railsr British company. AfriDesk gathers.
Railsr which is formally known as Railsbank are in dialogue with rival fintech firms like African largest payment technological firm, Flutterwave, alongside associate shareholders on the sale of their fintech firm on a sharp discount from a preliminary funding round.
A multibillion-dollar valuation has been attracted to Railsr due to the numerous offers fielded from prospective buyers such as Flutterwave and a number of Railsr stakeholders and investors.
There has been heavy competition for the fintech company. A source has disclosed. Railsr which is focussed on credit cards, banking services and digital wallets had initially raised a bridge funding last year for enough capital to survive in these times of consolidation in the fintech sector as other fintech companies scuffle to get enough funding to survive alone.
The ongoing sale process of Railsr is still in the works as no deal has been made as at the time of filing this report. Strategic options have been put in place which includes an outright sale for multiple months through their working activities with bankers like FT Partners.
Railsr have previously grab assets from Wirecard, a collapsed German company, as they also announced the completion of a $46m Series C funding round in last autumn. This took place at a valuation of $250m, which is below earlier fundraising.
The former chairman of MasterCard and current chair of Ocado and the AA, Rick Haythornthwaite, was named Chairman of Railsr fintech company last year. Although, an unspecified number of staff has been made redundant recently, just as it is happening with many tech peers.
Railsr founder, Nigel Verdon, has claimed previously that the firm is “transforming the finance industry the same way that Apple did to the music industry when iTunes was created”.
An equity funding of over $100m has been raised by Railsr with investors backing which includes Visa.