Rapyd, an Israeli global payments and fintech company, is now a unicorn. And what a unicorn! Rapyd now has a $10 billion valuation. Rapyd hit this milestone mark upon the completion of a record breaking $300 million Series E financing round led by Target Global with several new investors joining the round, including Fidelity Management and Research, Altimeter Capital, Whale Rock Capital, BlackRock funds, and Dragoneer.
Well the Rapyd valuation depends on who you ask. Calcalit says that it is now a $10 billion valuation. Globes says that the company is only worth $7.5 billion and Forbes says that Rapyd is only worth $5 billion. So why the disparities? It is because Rapyd declined to disclose how much the company thinks that it is worth.
But if you think that $10 billion is a lot, guess again. In March Rapyd rival the American company Strip raised $600 million which gave that company a $95 billion valuation.
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Why are these companies so valuable? Well, Fintech is in demand these days, as evidenced by the recent successful fundraising rounds held by fintech startups. Israeli startup Sorbet set a record in June for the largest seed round investment ever made for an Israeli fintech startup. The company, which helps people do things like convert unused Paid Time Off into cash brought in $21 million in funding on June 23.
But Rapyd now has Israel’s record for the largest funding round by far for a fintech startup.
The new funding comes just a month after Rapyd acquired the Icelandic company Valitor for $100 million. Valitor is a payments solutions company.
Rapyd describes its service as the fastest way to power local payments anywhere in the world, enabling companies across the globe to access markets quicker than ever before. Rapyd promises that businesses and consumers can engage in local and cross-border transactions in any market. The Rapyd platform is a unifying fragmented payment systems worldwide by bringing together 900-plus payment methods in over 100 countries. Rapyd’s investors include Stripe, General Catalyst, Oak HC/FT, Tiger Global, Durable Capital, Target Global, and Tal Capital.
“We have $750 million so clearly we are under no pressure to go public. We learned from U.S. fintech company Stripe, which is going public at a $250 billion valuation, that in our market it is best to remain private for as long as possible. I can go public at a $10 billion and even $20 billion valuation but I’m in no hurry. We have Fidelity, BlackRock, and Tiger, who are all funds that buy in IPOs. I have no reason to go public. I could do a roadshow on WhatsApp. Everyone wants to be part of our IPO. We want to reach a revenue of $1 billion, which will only happen in two to three years, no sooner. We will have $260 million in revenue this year.”