German startup Payrails raised $6.4 million to continue developing financial operations software for payments and financial services tailored to enterprises, according to media reports on Thursday (March 17).
The fresh infusion of capital was led by Andreessen Horowitz with participation by HV Capital; Delivery Hero CFO Emmanuel Thomassin; Flixbus founders Jochen Engert, André Schwämmlein and Daniel Krauss; and HelloFresh founder Dominik Richter.
Headquartered in Berlin and co-founded late last year by Delivery Hero alums CEO Orkhan Abdullayev, COO Emre Talay and CTO Nicolas Thouzeau, Payrails aims to enable high-growth companies to build and scale payment and financial services worldwide. The startup wants enterprises to operate without having to purchase complicated and expensive infrastructure.
“I like to compare our goals to what happened with cloud computing,” Abdullayev told Sifted.eu, referring to when companies had high overhead to maintain servers.
That changed when cloud services like Amazon and Google came to market with customizable, scalable, user-friendly products, he said.
The startup is targeting companies across all industries but is particularly focusing on firms that are heavily reliant on payments, like eCommerce marketplaces, payment service providers (PSPs) and mobility operations.
Payrails uses a single API to enable businesses to scale their payments and financial capabilities by way of smart payment routing and consolidated money movements. Analytics provide performance measurements and increased visibility into overall financial operations.
“As companies scale globally, they need infrastructure that allows them to quickly and easily add payment gateways and payment methods to be able to accept payments from their customers, as well as optimize their payment routes and authorization rates,” Seema Amble, investment partner at Andreessen Horowitz, told EU-Startups.
“The Payrails team deeply understands the payment challenges facing merchants as they grow. The founders bring a wealth of experience and a strong track record of execution to build solutions for this category, helping customers minimize complexity as they grow and scale,” Amble added.
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