Analysis
Rapyd’s IPO ambitions gain momentum with $500M raise and PayU purchase
The Israeli fintech firm is growing fast—will its market debut be next?
The Israeli fintech giant Rapyd is aggressively expanding its global footprint, raising $500 million and completing its $610 million acquisition of PayU’s global payments division. With its latest moves, Rapyd is positioning itself as a dominant force in the cross-border payments industry, setting the stage for a highly anticipated IPO. However, the broader fintech landscape—particularly the outcome of Klarna’s newly filed IPO—could play a crucial role in determining Rapyd’s market reception.
A fintech consolidator with IPO ambitions
Founded in 2015, Rapyd has evolved into one of the most significant players in the payments infrastructure sector. Its platform enables businesses to process transactions in over 100 countries through 1,200 payment methods, and the addition of PayU has further strengthened its regulatory reach across 41 jurisdictions.
Despite a decline in valuation from $15 billion at its 2022 peak to approximately $4.5 billion today, Rapyd remains a powerful contender in fintech. The company has signaled clear IPO intentions for 2026, but recent market dynamics could accelerate or delay that timeline. Klarna’s upcoming public offering will serve as a litmus test for investor appetite toward fintech listings after years of market uncertainty.
A challenging yet promising IPO market
Fintech IPOs have struggled since their 2021 peak, when companies like Robinhood and Affirm saw sky-high valuations before experiencing sharp declines. Rising interest rates and tighter capital markets cooled enthusiasm for high-growth but profit-light fintech firms. However, Klarna’s IPO, expected to raise over $1 billion at a valuation exceeding $15 billion, suggests that the window for fintech public offerings is reopening. If Klarna’s IPO performs well, it could pave the way for Rapyd to proceed with its own listing under more favorable conditions.
Rapyd differs from Klarna in key ways. While Klarna revolutionized online shopping with its buy now, pay later (BNPL) model, Rapyd has built a robust payments infrastructure that serves a diverse range of businesses across multiple regions. With annual revenue now exceeding $1 billion post-acquisition, Rapyd’s fundamentals could appeal to investors seeking a more stable fintech play.
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Profitability and AI: Rapyd’s edge
Unlike many fintech unicorns, Rapyd is already profitable, with CEO Arik Shtilman revealing plans to triple EBITDA margins over the next three years through AI-driven automation. The company aims to cut back-office costs by 70%, reinforcing its financial sustainability ahead of a potential IPO.
Regulatory approvals and global reach also provide a competitive moat, making it difficult for emerging startups to challenge Rapyd at scale. While rivals such as Stripe and Chime are also considering public listings, Rapyd’s blend of profitability, regulatory compliance, and global infrastructure could make it a standout IPO candidate.
The road ahead
Rapyd’s strategic acquisitions, strong revenue growth, and focus on profitability set it apart in the evolving fintech landscape. However, market conditions will dictate the timing and success of its public debut. If Klarna’s IPO is well received, Rapyd could accelerate its plans, seizing on renewed investor interest in fintech. If Klarna struggles, Rapyd may opt to delay until conditions improve. Either way, with $500 million in fresh funding and a strengthened global presence, Rapyd is well-positioned for the next phase of its journey.
