Israeli fintech company Rapyd will lay off dozens
Israeli fintech company Rapyd will reportedly lay off dozens of employees in the coming months, with some managers at various levels already notified earlier this week that their teams were being shut down or downsized. After several large acquisitions, the Tel Aviv-based digital payment platform is downsizing after merging the business.
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Rapyd said: “Rapyd has acquired two companies this year employing around 300 people worldwide, and the completion of one of the acquisitions, the Icelandic company Valitor, was delayed for 12 months, due to regulatory approval purchased in Europe by, for example, Iceland) . Now following the completion of the merger with Valitor, the company’s management is now working on plans for 2023 and 2024, and the company is investigating reducing its workforce.”
Rapyd acquired Valitor for $100 million in July 2021 from a local Icelandic bank to strengthen its operations in countries such as the UK, Ireland and Iceland. Estimates are that the acquisition increased annual revenues by 100-150 million dollars.
Rapyd has developed a digital payment platform that competes with Stripe and PayPal and allows small, medium and large businesses to receive payments from 200 possible channels compared to only 70 through PayPal. These channels include banks, credit card companies, digital wallets and other payment companies.
Rapyd has extensive operations in Asia, Europe and the Arab world, including a large office in Dubai, which was opened earlier this year and employs over 100 people. In Tel Aviv, Rapyd has leased 27,500 square meters from Azrieli Group in the triangular tower and spiral tower under construction. The five-year lease is worth NOK 250 million.
Rapyd has raised $806 million to date and was valued at $8.75 billion during its latest funding round in August 2021, making it one of Israel’s most valuable privately held technology companies. According to PitchBook, SoftBank sold its stake in the company earlier this year to an undisclosed buyer, likely due to the losses incurred by the fund over the past year.
Last year, Rapyd became a symbol of the success and prosperity of Israel’s fast-growing tech startups, treating its employees to lavish parties.
Published by Globes, Israel business news – en.globes.co.il – November 22, 2022.
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