Rainforest, a startup that embeds payment processing into other software platforms, has raised $29 million in a Series B funding round, the company told Crunchbase News exclusively.
Matrix Partners and Infinity Ventures co-led the financing for the Atlanta-based company, which also included participation from Accel, Tech Square Ventures and The Fintech Fund. All are repeat backers. In total, Rainforest has raised $57.5 million since its 2022 inception.
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Rainforest, which is a self-described challenger to fintech giant Stripe, bills itself as a “payments-as-a-service” provider. Put simply, it aims to help vertical software companies enable payment processing for their merchants.
CEO and founder Joshua Silver believes that Rainforest stands out from competitors such as Stripe and Adyen in that it was “purpose-built” for vertical software platforms. Those companies, he claims, initially built their platforms for merchants “and then retrofitted for software platforms.”
“Payment providers who divide their attention between platforms and merchants can never truly prioritize platform-specific needs like residual reporting and merchant management,” Silver told Crunchbase News. “In contrast, our entire roadmap is capabilities that help software companies monetize embedded payments.”
Rainforest raised its Series A — a $20 million round — in June 2024. Since then, the company has seen its annual recurring revenue increase by 10x, according to Silver, who declined to reveal hard revenue figures.
“In around two years, we’ve grown from hundreds of millions of dollars of committed volume to processing billions of live volume,” Silver told Crunchbase News.
That sort of growth is what led investors to double down on their investments in Rainforest.
“The numbers speak volumes,” said Matrix partner Matt Brown via email. “… Rainforest has managed to become a differentiated, trusted partner for billion-dollar platforms with a lean team and in record time.”
He added: “While everyone’s chasing AI, I believe we’re witnessing the quiet emergence of a generational fintech company.”
Rainforest declined to reveal at what valuation it raised its Series B, with Silver noting only that it was “several times higher” than its last round.
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