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