Rainforest Secures $29 Million in Series B Funding
Rainforest, an innovative startup focused on integrating payment processing into software platforms, has raised $29 million in a Series B funding round, as reported exclusively by Crunchbase News. This funding comes as the Atlanta-based company continues to expand its operations since its inception in 2022.
Key Investors and Financial Growth
The funding round was co-led by Matrix Partners and Infinity Ventures, bolstered by contributions from reputable investors including Accel, Tech Square Ventures, and The Fintech Fund. To date, Rainforest has raised a total of $57.5 million, cementing its position as a competitive player in the fintech landscape.
Focused on Vertical Software Solutions
Positioned as a challenger to established fintech giants such as Stripe and Adyen, Rainforest offers “payments as a service” specifically designed for vertical software companies. CEO and founder Joshua Silver emphasizes that unlike competitors who cater to both platforms and merchants, Rainforest is tailored to meet the unique needs of software platforms.
Impressive Growth and Revenue Data
Rainforest experienced significant growth, boasting a 10x increase in annual recurring revenue since its Series A funding of $20 million in June 2024. Silver shared that the transaction volume has skyrocketed from hundreds of millions to billions, underscoring the company’s rapid expansion and increasing acceptance in the industry.
Market Potential and Client Base
Currently, Rainforest serves nearly 100 customers, encompassing a diverse array of sectors including healthcare, non-profit organizations, and home services. Notable clients include Hint Health, Keap, and Payground, illustrating the wide-reaching impact of its services.
Innovative Technology and Security Measures
Rainforest prides itself on leveraging AI tools for enhanced fraud detection, which helps in adapting swiftly to evolving threats. Silver notes that while the tech industry is abuzz with AI advancements, these developments also pose challenges in the form of increasingly sophisticated fraud. Therefore, Rainforest continuously upgrades its risk management systems to stay ahead of these threats.
Future Plans and Innovations
Looking ahead, Rainforest plans to utilize the proceeds from its latest funding to hire more talent, expand into Canada, and further develop innovative products. Noteworthy initiatives include a mobile payment solution that transforms smartphones into payment terminals. Additionally, Rainforest aims to diversify by integrating alternative payment methods and enhancing its fintech orchestration capabilities.
Final Thoughts
The impressive execution by Rainforest has garnered attention from investors, including Matt Brown of Matrix Partners, who commended the startup’s ability to navigate the complexities of payment migrations for vertical SaaS companies. As it continues to grow and innovate, Rainforest is setting a new standard in the fintech sector.