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Payrails Rakes in Millions with Revolutionary Payment Operating System

Payrails Rakes in Millions with Revolutionary Payment Operating System

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Payrails secures $14.4 million to build a framework for stable enterprise payment services

Payrails, a startup founded by three payments engineers, has developed a framework to build and operate more stable enterprise payment services. The company has secured $14.4 million in funding, led by EQT Ventures, with General Catalyst, Andreessen Horowitz, and HV Capital also participating. Payrails aims to tackle the problem of managing payments across different geographies and products, which can be complex and lead to buggy or missing functionality when handled using mix-and-match bags of third-party services patched together by engineers. The startup offers a range of services in three categories: Payments, Ledgers, and Automations.

The founders’ background

Payrails was founded by Orkhan Abdullayev, Emre Talay, and Nicolas Thouzeau. When they were working together at Delivery Hero, they built and ran a large payments operation that gave them the idea of creating a framework to solve the issue for other companies.

The challenges enterprises face in building payments flows

Enterprises and marketplaces face challenges in building payments flows for themselves. Many payments executives describe issues they encounter when building payments services for existing products or those yet to launch. Payrails offers a clean slate solution, separate from any real-time pressures specific to a particular business.

The framework for stable enterprise payment services

Payrails has developed a framework for stable enterprise payment services, offering a range of services divided into three categories:

  • Payments: covering smart payment routing, auto-retries on failed payments, and customizable check-out.
  • Ledgers: related to how funds are split or merged.
  • Automations: such as reconciliations, running simulations on services, anomaly detection, and analytics.

Payrails is among several companies working on simplifying this process. Payoneer, Adyen, Fabrick, and others also provide services to enterprises to build solutions that fit their needs. Typically, companies work with multiple providers because of varying needs across geographies.

Payrails’ growth and the impact of COVID-19

Payrails CEO, Orkhan Abdullayev, has not disclosed the names of customers or any metrics on growth. However, he has noted a shift in priorities, stating, The priority for many companies shifted from ‘I want to launch in 10 more markets’ to efficiency… How do we reduce our payment costs and automate processes around payouts, reconciliation, money movement?

The CEO adds that the last year has also affected Payrails priorities, as the sales cycles have become longer.

The latest funding

The recent funding of $14.4 million is described as a seed extension for Payrails, coming after an earlier seed round of $6.4 million in 2019. Andreessen Horowitz led this first round, with participation from HV Capital. Payrails has not disclosed its current valuation.

FAQs

What is Payrails?

Payrails is a startup that has developed a framework to build and operate more stable enterprise payment services.

Why is the framework needed?

The framework is needed because enterprises and marketplaces that need to take and make payments across multiple geographies and products have typically relied on mix-and-match bags of third-party services patched together by teams of engineers with some of their own code. These solutions are often buggy and may lack some vital functionality, and the complexity can hide malicious activity.

What types of services does Payrails offer?

Payrails offers a range of services divided into three categories: Payments, Ledgers, and Automations.

Who are Payrails’ founders?

Payrails was founded by Orkhan Abdullayev, Emre Talay, and Nicolas Thouzeau.

Who has invested in Payrails?

EQT Ventures has led the recent funding of $14.4 million, with General Catalyst, Andreessen Horowitz, and HV Capital also participating. Andreessen Horowitz led the previous seed round of $6.4 million in 2019.

What is the startup’s current valuation?

Payrails has not disclosed its current valuation.

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