Rainforest Raises $29 Million in Series B Funding Round

Rainforest, a startup specializing in embedding payment processing into other software platforms, has successfully raised $29 million in a Series B funding round. The funding is co-led by Matrix Partners and Infinity Ventures and includes participation from repeat backers such as Accel, Tech Square Ventures, and The Fintech Fund.

Since its inception in 2022, Rainforest has secured a total of $57.5 million in funding. The company positions itself as a challenger to fintech giant Stripe, offering 'payments-as-a-service' to assist vertical software companies in enabling payment processing for their merchants. CEO and founder Joshua Silver emphasizes that Rainforest stands out as it was purpose-built for vertical software platforms, unlike its competitors.

Rainforest raised its Series A funding of $20 million in June 2024 and has witnessed a tenfold increase in annual recurring revenue since then. The company has seen significant growth, processing billions of live volume within a span of two years. The investors' decision to double down on their investments in Rainforest is driven by the company's exceptional growth and its differentiation in the market.

Rainforest has not disclosed the valuation at which it raised its Series B, but the CEO notes that it was 'several times higher' than its last round. With nearly 100 clients, including Hint Health, Keap, and PayGround, Rainforest's fastest-growing segments are healthcare, nonprofits, and home services. The company plans to utilize the new capital for expansion, further product development, and hiring. Rainforest's revenue model is entirely consumption-based, taking a small percentage cut of each transaction processed through its platform. The company also intends to add alternate payment methods and fintech orchestration, as well as expand to Canada.