Payrails: German Fintech Raises Funding From EQT and General Catalyst
German fintech startup Payrails has raised $14.4 million in a funding extension from EQT Ventures and General Catalyst, the company said on Tuesday.
Payrails, which was founded in 2021 by a group of ex-Delivery Hero staffers, helps businesses streamline and simplify their payment reconciliation and refunds. The fresh funds come from EQT Ventures and General Catalyst, confirming previous Insider reporting
VC giant Andreessen Horowitz and German investor HV Capital funded a $6.4 million seed round in 2021.
Orkhan Abdullayev, a former fintech VC at DeliveryHero, created the startup alongside Emre Talay and Nicolas Thouzeau, who also held senior positions at the German food-delivery giant.
"We're building an operating system for fast-growing tech companies to manage payment operations and support workflows, we've got our product to the right stage and had good impact with first adopters," Abdullayev, Payrails CEO said. "We've grown and now have large enterprises using the product so the fundraising is a decision to help us accelerate our product roadmap."
Payrails operates in the "FinOps" space, working with marketplaces and online merchants to simplify their payments.
FinOps, a portmanteau of finance and devops, has become one of the most sought-after areas of fintech. The sector is built around digitizing payments infrastructure for businesses, with startups in the space offering APIs to help finance teams manage their payment workflows.
"There is exponential complexity in the payments space once you start adding different payment methods and countries and I saw this from my experience at Stripe," Kaushik Subramanian, partner at EQT Ventures, told Insider. "The spaghetti of payments is hard to figure out and you need someone who has deep expertise because you can't move fast and break things in this space."
The company has around 30 staff currently and will continue to grow out its product and engineering teams with the new capital, Abdullayev added.
Check out the company's 11-slide pitch deck below:
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Check out the company's 11-slide pitch deck below. Check out the company's 11-slide pitch deck below: