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, a startup that embeds payment processing into other software platforms, has raised $29 million in a Series B funding round, the company told 附近上门 News exclusively.

and co-led the financing for the Atlanta-based company, which also included participation from 听 and . All are repeat backers. In total, Rainforest has raised $57.5 million since its 2022 inception.

Rainforest, which is a self-described challenger to fintech giant , bills itself as a 鈥減ayments-as-a-service鈥� provider. Put simply, it aims to help vertical software companies enable payment processing for their merchants.

CEO and founder believes that Rainforest stands out from competitors such as Stripe and in that it was 鈥減urpose-built鈥� for vertical software platforms. Those companies, he claims, initially built their platforms for merchants 鈥渁nd then retrofitted for software platforms.鈥�

鈥淧ayment providers who divide their attention between platforms and merchants can never truly prioritize platform-specific needs like residual reporting and merchant management,鈥� Silver told 附近上门 News. 鈥淚n contrast, our entire roadmap is capabilities that help software companies monetize embedded payments.鈥�

Rainforest raised its 鈥� a $20 million round 鈥� 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.

鈥淚n around two years, we鈥檝e grown from hundreds of millions of dollars of committed volume to processing billions of live volume,鈥� Silver told 附近上门 News.

That sort of growth is what led investors to double down on their investments in Rainforest.

鈥淭he numbers speak volumes,鈥� said Matrix partner via email. 鈥�… Rainforest has managed to become a differentiated, trusted partner for billion-dollar platforms with a lean team and in record time.鈥�

He added: 鈥淲hile everyone’s chasing AI, I believe we’re witnessing the quiet emergence of a generational fintech company.鈥�

Rainforest declined to reveal at what valuation it raised its Series B, with Silver noting only that it was 鈥渟everal times higher鈥� than its last round.

Finding the market

Silver previously founded , a healthcare SaaS that he (which went public in 2024). Prior to starting Rainforest, Silver said he consulted with more than 50 SaaS companies, and came to the conclusion that many of them were not happy with their existing embedded payments providers. So he set out to build an alternative.

Today, Rainforest has nearly 100 clients that have thousands of merchants across their platforms. They include , , , , , , and .

Healthcare, nonprofits and home services are the fastest-growing segments of Rainforest鈥檚 business, followed by education, local government and professional services.

Like many other startups, the company has implemented some AI tools, but it鈥檚 not where people might expect, according to Silver.

鈥淲hile the tech industry is excited about AI, that same technology is also helping fraudsters evolve faster and evade traditional rule-based fraud detection tools,鈥� he said. As such, Rainforest has upgraded its risk management systems to include AI tools that are designed to work with its platform-specific risk models 鈥渢o stay ahead of fraudsters.鈥�

Another way Rainforest differs from some competitors is that its revenue model is entirely consumption-based, just like cloud services. So rather than charging monthly platform or merchant fees, the company says it takes a 鈥渟mall鈥� percentage cut of each transaction processed through its platform.

What鈥檚 next

Looking ahead, Rainforest plans to use its new capital to do more hiring (it currently has more than 40 employees), expand to Canada and continue its product development such as tap-to-phone, which allows merchants to use mobile phones as a terminal, rather than proprietary terminals. The company also plans to add alternate payment methods and fintech orchestration.

, managing partner at Infinity Ventures, described Rainforest鈥檚 level of execution as 鈥渦nparalleled.鈥�

鈥淥ne of the biggest challenges vertical SaaS companies face is the ability to migrate payment volume to a new provider and some companies struggle for years,鈥� he said in a written statement. 鈥淭his is exactly where Rainforest shines, helping their platform clients move hundreds of millions of dollars in just a few weeks or months.鈥�

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Photo by Chloe Jackman