Rainforest, an Atlanta-based startup focused on embedded payment solutions for software companies, has successfully raised $29 million in a Series B funding round. This marks a significant advancement for the company, positioning it as a formidable competitor to FinTech leader Stripe.
The new funding comes from a blend of West Coast and Southeast investors, all of whom also participated in Rainforest’s $20 million Series A funding last summer. Leading the investment are Matrix Partners and Infinity Ventures, with additional support from Accel and Tech Square Ventures, based in Atlanta.
With this latest round of financing, Rainforest’s total funding has now reached $57.5 million.
Joshua Silver, the founder and CEO of Rainforest, shared insights with Hypepotamus about the company’s recent funding journey, stating that their Series A exceeded expectations. He remarked, “This inspired conversations around what levers we could pull to grow even faster and sustain that growth rate for longer. The answer is accelerating our product roadmap and scaling our GTM and customer-facing team. This funding empowers us to expand our team and build faster, without shortening our runway.”
Investment partner Matt Brown from Matrix described investing in Rainforest’s Series B as a straightforward decision. He emphasized the strategic advantage of embedded payments, stating, “Embedded payments are the secret weapon of the best vertical software companies, like Shopify and Toast.”
According to Brown, companies that successfully implement embedded payments can witness substantial increases in revenue and customer retention. He added, “It’s easier than ever to add payments to a vertical SaaS product, but it’s harder than ever to succeed with payments because revenue depends on adoption. Rainforest provides the technology, service, and proven playbook to help their platform clients maximize adoption and drive real payments revenue.”
Rainforest has demonstrated impressive growth, achieving a year-over-year revenue increase of 10 times and experiencing a notable surge in annual processing volume. Its customer base is diverse, encompassing industries such as healthcare, professional services, and youth sports clubs.
When asked about the factors contributing to this growth, Silver noted an unexpected finding—platform size. Originally, he believed there would be a limit to the size of platforms interested in their solution. “If you look back at our Series A press release, it mentioned we’d achieved a stronghold among platforms processing $50 million – $2 billion annually,” Silver explained. He continued, “Since then, we’re finding platforms processing several billions annually that want our solution because even these larger platforms really aren’t getting the service they need and deserve from other payment providers.”
Recent product updates have enhanced users’ ability to boost payment adoption and revenue through several new features, including an embedded chargeback management solution, real-time bank validation, and real-time BIN lookup, as well as support for partial authorization, which is particularly vital for those processing HSA/FSA payments.
With the recent funding, Rainforest intends to broaden its product range, introducing tap-to-phone capabilities and alternative payment methods. Additionally, the funding will facilitate hiring and allow Rainforest to extend its operations into the Canadian market.
Silver emphasized that entering Canada will not only open a new market but will also enable existing clients to broaden their offerings in a new region.
The growth of Rainforest is reflected in its physical presence as well, with the company’s logo displayed prominently on the marquee signage of the Atlanta Tech Village in Buckhead, a testament to its expanding workforce. Since the Series A fundraising in 2024, Rainforest has doubled its engineering team.
Silver identified key qualities he seeks in engineering talent, including domain expertise, problem-solving abilities, a proactive attitude, and a genuine passion for helping clients succeed. He stated, “We don’t do month-long code freezes. We average 6.5 releases per day, and we have robust testing procedures so engineers can move fast without breaking things.”
image source from：hypepotamus
