Berlin-based Payrails raises over €5.7 million to launch payments and financial services operating system

Offering an operating system for payments and financial services, tailored to Entreprises clients, Payrails has just raised over €5.7 million to launch its next-generation financial operations (FinOps) platform. 

The fresh funding for the Berlin-based fintech was led by Andreessen Horowitz with HV Capital, Delivery Hero CFO Emmanuel Thomassin, Flixbus founders Jochen Engert, André Schwämmlein and Daniel Krauss as well as Dominik Richter, founder of HelloFresh, joining the round.

Founded in late 2021 by Orkhan Abdullayev, Emre Talay, and Nicolas Thouzeau, Payrails wants to enable high-growth companies to curate their payment experiences and financial services globally. The mission is to empower enterprises to build, operate, and scale payment acceptance and embed financial services, without the need for a costly and complex in-house infrastructure. In the age of growing e-commerce, digital payments are more needed than ever before. 

Payrails brings value to all players in the payment ecosystem as the solution also ultimately benefits the end-user by making the process a whole lot smoother. With Payrails’ platform, businesses can leverage a single Application Programming Interface (API) to scale their payments and financial capabilities via smart payment routing, consolidated money movements, and payment reconciliation via ledgers. At the same time, enterprise clients can track their payments’ performance through unified analytics, providing more control and visibility over a company’s financial operations which helps to reduce payment fraud. Payment-Service-Providers (PSP) significantly benefit from the solution as well. Payrails offers PSPs an easier way to onboard new customers and enables payment acceptance for marketplaces. It really is a win-win solution.

With the increase in the adoption of digital payments, changes in payment habits, and the rise of local payment methods, enterprises are operating in an increasingly complex and fragmented payment environment. This is where Payrails comes in – powering payments and financial services across countries, currencies, and payment methods through its end-to-end operating system. It means that merchants can more easily add new payment methods to serve their customers better and improve their authorization rates while managing local compliance and regulatory requirements. Catering to enterprise clients across all industries, including marketplaces, e-commerce, quick-commerce and mobility players, the solution will fill a critical void in the growing digital payments market.

Seema Amble, Investment Partner at Andreessen Horowitz, said: “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. 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.”

Payrails is launching the industry-disrupting solution in Europe, and will use the fresh funds to continue its fast-paced expansion – the company has a 30-people strong team, and want to grow to 100 by the end of this year. Alongside the launch, the company has started working with select clients using Payrails’ infrastructure to improve their payment performance.

Orkhan Abdullayev, CEO and Co-Founder of Payrails, commented: “We are incredibly excited about the journey ahead of us. As we have experienced countless challenges related to building, operating, and scaling payments and financial services globally, we empathize with enterprises’ pain points. Our ledger-based operating system, Payrails OS, targets these challenges directly and allows enterprises to unlock value fast. In Andreessen Horowitz and HV Capital, we have found partners that share our vision and long-term view on how to enable high-growth companies to craft their payment experiences and financial services globally.”