Rainforest, an embedded payment provider for software platforms, has secured $29m in an “oversubscribed” Series B funding round. 

The round was led by Matrix Partners and Infinity Ventures, with contributions from Accel and Tech Square Ventures, all of whom also participated in Rainforest’s Series A. 

The company’s total funding has now reached $57.5m. 

These funds will be directed towards hiring, expansion into the Canadian market, and the development of new payment technologies including tap-to-phone and alternate payment methods. 

Rainforest founder and CEO Joshua Silver said: “Our growth reflects our customers’ success – many of them rely on Rainforest to generate 50% or more of their revenue, which is both an extreme honour and responsibility. In my twenty years of experience in payment technology, I have never felt more confident about the ability to deliver on the wishlist of functionality, security, visibility, consistency and reliability.”  

“We’ve already signed major Stripe clients with billions in processing volume. This new investment will be instrumental in building on our momentum and making our platform even more feature-rich as we help our customers maximise their payment revenue.” 

Following the previous funding round, Rainforest has seen a more than tenfold increase in revenue, propelled by a substantial annual processing volume.  

The company has introduced several product enhancements aimed at increasing payment adoption, volume, and revenue for software platforms.  

These include an embeddable chargeback management system, ACH payments with real-time bank validation, real-time BIN lookup for surcharging, partial authorisations, and a Forward API for secure data sharing. 

Rainforest’s objective is to help vertical software companies integrate payment systems into their platforms, thereby increasing revenue and customer retention.  

It seeks to resolve issues faced by software platforms in embedded payments, such as the rejection of legitimate merchants, lack of onboarding visibility, inconsistent payment data, operational tasks, discrepancies in merchant deposits, and lengthy delays. 

The company’s approach differs from that of competitors like Stripe Connect and Ayden Platforms, which were originally created for merchants and later adapted for software platforms.