The fintech landscape has witnessed an extraordinary disruption as Rainforest, the Atlanta-based payments-as-a-service provider, secures a monumental $29 million Series B funding round. This strategic investment marks a defining moment in embedded payments technology, positioning Rainforest as the undisputed challenger to industry giants like Stripe and Adyen.
Record-Breaking Growth Trajectory: Rainforest Series B Validates Market Disruption
The numbers behind Rainforest’s Series B funding tell an unambiguous story of market dominance. The company achieved a staggering 10x increase in annual recurring revenue since its $20 million Series A in June 2024. In just two years, Rainforest scaled from processing hundreds of millions to billions in transaction volume—this isn’t incremental progress, this is revolutionary market penetration that demands absolute attention from industry leaders.
Key Evidence:
- $57.5 million total funding since 2022 inception
- 1000% revenue growth in 15 months
- Processing billions in live transaction volume
Elite Investment Coalition Powers Rainforest Series B Success
The institutional backing represents the financial elite’s unanimous confidence in disruptive potential. Matrix Partners and Infinity Ventures co-led this strategic investment, joined by repeat investors Accel, Tech Square Ventures, and The Fintech Fund. This isn’t casual investment—this is calculated recognition of generational fintech innovation. Matrix partner Matt Brown declared: “While everyone’s chasing AI, I believe we’re witnessing the quiet emergence of a generational fintech company.”
Startup Companies List – Payment Processing Landscape:
- Rainforest (Embedded Payments) – $57.5M funding, 10x growth
- Stripe (Payment Processing) – $95B valuation
- Adyen (Payment Platform) – Public company
- Square (Financial Services) – Public company
- PayPal (Digital Payments) – Public company
Direct Stripe Challenge: Purpose-Built Architecture Defines Strategy
Rainforest’s Series B funding enables aggressive competitive strategy against established processors. Unlike competitors who were “initially built for merchants and then retrofitted for software platforms,” Rainforest was purpose-built exclusively for vertical software companies. CEO Joshua Silver’s positioning is crystal clear: “Payment providers who divide their attention between platforms and merchants can never truly prioritize platform-specific needs.” This architectural advantage represents the fundamental differentiator driving investor confidence.
Logical Progression:
- Specialized focus: 100% vertical software dedication
- Revenue model: Consumption-based pricing, zero monthly fees
- Client validation: Nearly 100 platforms managing thousands of merchants
Strategic Market Expansion Accelerated by Series B Capital
The funding catalyzes immediate strategic expansion across geographic and technological frontiers. Rainforest plans aggressive Canadian market entry while advancing cutting-edge payment technologies including tap-to-phone capabilities. The company implements AI-powered fraud detection systems, with Silver noting: “While the tech industry is excited about AI, that same technology is also helping fraudsters evolve faster.” This recognition drives sophisticated risk management specifically designed for platform-centric fraud detection.
Emotional Resonance: Healthcare platforms focus on patient care instead of payment complexity. Nonprofit organizations dedicate resources to mission-critical activities rather than transaction management.
Explosive Sector Performance Drives Investment Confidence
Market validation is irrefutable. Healthcare, nonprofits, and home services represent the fastest-growing segments, followed by education, local government, and professional services. Client roster includes Hint Health, Keap, RoadSync, and QuoteMachine—demonstrating tangible market penetration across multiple verticals. Infinity Ventures’ Jeremy Jonker captures execution excellence: “Rainforest shines, helping platform clients move hundreds of millions of dollars in just weeks or months.”
Key Evidence:
- Nearly 100 client platforms across diverse sectors
- Migration capability: Hundreds of millions in volume within weeks
- Revenue model eliminates merchant fees entirely
Business model of Rainforest
| Category | Critical Intelligence |
|---|---|
| Company Origins | Founded 2022 by Joshua Silver (previously sold Patientco to Waystar). Born from consulting 50+ SaaS companies who expressed dissatisfaction with existing embedded payment providers. Purpose-built from day one for vertical software platforms exclusively. |
| Present Condition | EXPLOSIVE GROWTH: $57.5M total funding, 10x revenue increase in 15 months. Processing billions in transaction volume. Nearly 100 client platforms managing thousands of merchants. 40+ employees, Atlanta-based headquarters. |
| Future Trajectory | AGGRESSIVE EXPANSION: Canadian market entry imminent. Tap-to-phone technology rollout. AI-powered fraud detection systems. Alternative payment methods integration. Fintech orchestration capabilities. Strategic hiring acceleration across all departments. |
| Entrepreneurial Opportunities | MASSIVE MARKET GAP: Vertical SaaS companies desperately need specialized payment infrastructure. B2B fintech solutions show 10x growth potential. Platform-specific payment tools represent untapped $50B+ market opportunity. |
| Market Share | CHALLENGER POSITION: Direct competitor to Stripe ($95B valuation) and Adyen (public). Fastest-growing segments: Healthcare, nonprofits, home services. Capturing market share through specialized vertical focus vs. generalized solutions. |
| Competitive MOAT | PURPOSE-BUILT ARCHITECTURE: Unlike retrofitted competitors, designed exclusively for software platforms. Proprietary platform-specific risk models. Consumption-based pricing eliminates monthly fees. Superior migration capability (hundreds of millions moved in weeks). |
| Revenue Model | CONSUMPTION-BASED DOMINATION: Takes small percentage of each transaction processed. Zero monthly platform or merchant fees. 100% transaction-volume dependent revenue. Cloud services pricing model applied to payments infrastructure. |
| Industry Future | EMBEDDED PAYMENTS REVOLUTION: Shift from merchant-focused to platform-centric infrastructure. Vertical specialization trumps horizontal generalization. AI-powered fraud detection becomes standard. Mobile terminal replacement accelerates globally. |
Key Evidence
- Revenue Explosion: 10x annual recurring revenue growth in 15 months
- Investment Validation: $29M Series B led by Matrix Partners and Infinity Ventures
- Market Penetration: Processing billions in live transaction volume
- Client Migration Success: Moving hundreds of millions in weeks vs. years for competitors
Startup Companies List – Payment Innovation Leaders
- Rainforest (Vertical Payments) – $57.5M funding, 10x growth trajectory
- Stripe (Universal Payments) – $95B valuation, market leader
- Square (Small Business) – Public company, merchant-focused
- Adyen (Enterprise Payments) – Public company, global reach
- PayPal (Consumer Payments) – Public company, established base
Logical Progression
The evidence is OVERWHELMING: specialized architecture delivers superior value to vertical software companies. Rainforest’s purpose-built platform eliminates the retrofitting problems plaguing generalized competitors. This isn’t incremental improvement—this is architectural supremacy that reshapes entire industry dynamics.
Emotional Resonance
Healthcare platforms can focus on SAVING LIVES instead of payment complexity. Nonprofit organizations can dedicate resources to CHANGING THE WORLD rather than transaction management. This is the transformation that matters—technology serving human purpose instead of creating technological barriers.
The Rainforest Series B funding represents more than capital—it signals fundamental industry transformation toward specialized, platform-centric payment infrastructure that will reshape how vertical software companies monetize embedded payments capabilities worldwide.
I’m Araib Khan, an author at Startups Union, where I share insights on entrepreneurship, innovation, and business growth. This role helps me enhance my credibility, connect with professionals, and contribute to impactful ideas within the global startup ecosystem.
