Rainforest, a fintech startup, has reached a significant milestone in its embedded finance journey by securing $20 million in Series A funding. Alongside this achievement, the company has welcomed numerous new businesses to its platform and experienced a 17-fold increase in payments volume over the past six months.
While Rainforest, currently valued at over double its previous worth, did not disclose specific financial details, its remarkable growth is a result of its unique approach to building an embedded finance platform tailored specifically to software platforms. Unlike its competitors, Rainforest focuses on offering a service that benefits merchants.
CEO and founder of Rainforest, Joshua Silver, emphasized the importance of avoiding payment solutions that are equivalent to fast food, merely providing temporary satisfaction. Instead, the company aims to develop a nourishing approach, helping software vendors enhance their revenue per customer. By incorporating fintech into their offerings, software providers can generate two to five times more revenue from embedded finance than from their core product, demonstrating the potential power of this synergy.
Rainforest’s success can be attributed to its embedded finance model, which sets it apart from other players in the market. Unlike traditional models, Rainforest charges transaction fees, ensuring clients only pay for the services they use. This approach aligns with its commitment to delivering value and enhances its competitive advantage in the industry.
As Rainforest continues to innovate and expand its embedded finance platform, its investment in building a robust and customer-centric solution will undoubtedly shape the future of financial technology, revolutionizing the way software platforms monetize their services.