Railsr became the latest integrated finance company to raise funds, bringing in $46 million.

The increase: Integrated financing firm Railsr landed $46 million in Series C funding, according to a company press release.

  • The increase consisted of $26 million in equity and $20 million in debt.
  • The UK-based fintech, formerly called Railsbank, said it was an “important step” on its way to making a first profit.

Market picture: Despite a decline in fintech financing, integrated finance has been one of the most resilient areas of financial services for growth and fundraising. In the past month:

  • UK Software as a Service (SaaS) provider Toqio landed 20 million euros ($23.6 million).
  • London-based small business lender Liberius secured $140 million in debt financing.
  • Further, the Pakistani integrated financing platform Neem raised $2.5 million and Australia Shape bagged A$33 million ($25 million).

Room to grow: The relatively optimistic financing environment for integrated finance companies can be partially explained by its expected growth.

  • It generated around $2.6 trillion in financial transactions in the United States in 2021, and that the number is expected to reach $7 trillion by 2026, by Bath.
  • And business loans focused on integrated financing to skyrocket its popularity will increase sixfold over the next five years to reach $1.3 billion by 2026.

Embedded finance companies like Railsr will continue to attract investors due to the enormous potential of the technology and its uses, which are at the heart of the development of super-applications and extend beyond banking into the payments, investment, insurance and cryptocurrency. Fintechs can partner with financial institutions and banks to enable them to integrate financial services to improve customer experience and better personalize products.

Attempts by Google and Apple to integrate financial services products into their commerce platforms show that Big Tech is realizing its potential and is ready to compete with banks to become leaders in the space.

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