Two former Delivery Hero execs have raised $32m in funding for their payments software fintech Payrails, which is aimed at enterprises.
HV Capital, which previously invested in Payrails’ seed round, led the funding round, which featured participation from existing investors General Catalyst, Andressen Horowitz and EQT Ventures. The Berlin-based fintech has previously raised $22m in funding.
Cofounders Orkhan Abdullayev, formerly VP of fintech at Delivery Hero, and Emre Talay, ex-senior director of fintech at the delivery platform, started working on the startup towards the end of 2021.
The pair decided to found Payrails after building Delivery Hero’s payment stack in-house, which served as an entry point into the complex world of enterprise payments.
What do they do?
As companies expand globally, they typically have to manage a myriad of different payment service providers and payment methods across different geographies. That often means they have to either wrestle with legacy systems unable to manage complex payment needs or build those capabilities in-house — a difficult task for a company without fintech domain expertise.
“The moment you scale and things start becoming more complex in terms of geographies and numbers, you usually have to start doing a lot yourself,” Abdullayev tells Sifted.
Payrails aims to be an “all-in-one payment platform” that companies can use to have visibility over and manage this patchwork of different payment operations and transactions through one single interface.
“Our power is helping you bring the pieces together,” says Abdullayev.
Payrails isn’t the only payments fintech focused on serving enterprise clients to raise funding in recent months. Earlier this month, SoftBank invested $40m into Irish fintech NomuPay, which provides payment infrastructure for merchants looking to transact in Asia. Prior to that, London-based Navro, which allows international businesses to send and receive international payments, raised a $41m funding round led by Jump Capital.
New products and hiring plans
Payrails currently operates in over 30 countries, largely across Europe and the Middle East, targeting large enterprise clients and already has big brands on its books such as Puma, Vinted, Just Eat and Flix.
Companies pay a subscription fee to use Payrails, which differs based on the size of the company and what features they’ve chosen to integrate into the platform.
The Payrails product currently has over 100 integrations, including payment service providers like Stripe, fraud prevention solutions like Forter and software products such as Salesforce.
A chunk of the funding will be used to grow its list of features with new products in payment acceptance and payouts, while the remainder will go towards hiring commercial and product teams across its offices in Berlin, London, Paris, Dublin, Cairo and Dubai.
“As we keep scaling, it’ll be interesting to see how much we can do to reduce inefficiencies on the payment side,” says Abdullayev. “There’s still a lot of waste in terms of abandoned checkouts or payment failure rates — we’re looking forward to seeing what we can do there.”
Read the orginal article: https://sifted.eu/articles/delivery-hero-alum-funding/
