Flutterwave, a payment infrastructure provider for domestic and cross-border payments in Africa, is reportedly vying to acquire British banking-as-a-service (BaaS) infrastructure provider Railsr. 

Flutterwave is reportedly competing for this acquisition against a consortium comprising several of Railsr’s existing investors. 

This announcement comes after Railsr downsized its operations and made a number of unspecified staff redundant in recent months. This was likely due to inflationary pressures, rising interest rates, and VC pullback. 

In October 2022, Railsr raised USD 46 million , in a mix of Series C and debt funding at a heavily discounted valuation of approximately 250 million (from nearly USD 1 billion in July 2021). It is reported that this funding was likely a bridge funding round leading toward an eventual sale of the business. 

Analyst QuickTake: Flutterwave raised USD 250 million in Series D funding in February 2022, with its valuation rising to USD 3 billion (from around USD 1 billion in March 2021). The funds raised were partially earmarked for spurring growth through M&A. This acquisition could be a sign of future prospects for the FinTech sector, as companies may struggle to secure funding as a result of the economic downturn.